France ‘agrees warship compensation’
Warship deal resolved.
Russia Mistral: France ‘agrees warship compensation’
France has agreed to pay compensation to Russia for cancelling the sale of two warships, a Russian official says.
France stopped the sale after the outbreak of the conflict in eastern Ukraine, where Russia is accused of backing separatist rebels.
The Mistral contract was worth €1.2bn (£843m; $1.3bn). Russia made an advance payment of about €840m.
The first of two helicopter carriers – the Vladivostok – was supposed to be delivered to Russia in November 2014.
“The negotiations are completely finished, everything has already been decided, both the time-frame and the amount,” said Vladimir Kozhin, an aide to Russian President Vladimir Putin.
Western sanctions have been ratcheted up against Russia since March 2014, when the Ukrainian crisis began.