A deal has been agreed in which Russia will receive compensation for France's decision last year to cancel the sale of two warships. France will fully refund Russia for the two helicopter carriers. The deal was worth €1.2bn ($1.3bn) and Russia made an advance payment of about €840m.
The Kremlin says that it now considers the dispute to be fully resolved. French President Francois Hollande's office said that Russia will be fully reimbursed for the two warships. It said that France will keep both vessels.
France stopped the planned sale after the outbreak of the conflict in eastern Ukraine. The Kremlin said that France has agreed to pay back money Russia paid under the contract.
France has already transferred these funds and, after the return of equipment, will acquire ownership and be able to take charge of both ships, it said in a statement.
The Elysee Palace statement said that all Russian equipment installed on the ships will be removed and handed back to Russia.
The deal was described last year as the biggest arms sale made by a Nato country to Russia. The Mistral-class vessels carry about 700 troops, 16 helicopter gunships and up to 50 armored vehicles.
Last month President Hollande denied claims that a deal had been reached. At that time it was suggested that France would compensate Russia to the tune of €1.16bn.
That sum included the amount that Russia has already spent on special training for 400 sailors, on port infrastructure in Vladivostok for the two warships and on developing four prototype Ка-52К helicopters.
Western sanctions have been ratcheted up against Russia since March 2014, when Russia annexed the Ukrainian region of Crimea. Russia denies backing pro-Russian separatist rebels fighting in eastern Ukraine.
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Truly sad for the French ship workers and worse for the French economy. Yes, Russia is a bad boy in he European political theatre, but the real losers are the French.Aug 06th, 2015 - 10:52 am 0
The Russians will build even better ships for the Russian Federation.
How are the French losers?Aug 06th, 2015 - 11:17 am 0
They still build the ships so the workers still have jobs. And if Russia could build ships like that then they would have.
Principles sometimes cost money. Russia is without ships it wanted and France can sell them elsewhere.
Who will France sell the ships to ?Aug 06th, 2015 - 07:24 pm 0
Hollande said today that France will have no trouble selling the ship's.
could NATO buy them, could Britain buy them and convert them, would it be feasible,
The Spanish , Greece , Italy turkey or even Egypt ,
the USA or perhaps one of their friends in south America,
Who will buy them, ??????
just a thought.