France, Russia settle row over warship
France yesterday agreed to pay compensation to Russia for cancelling the sale of two warships, a Russian official said.
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. 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.
Sources close to the talks, quoted by Russia's Kommersant daily, say France will compensate Russia to the tune of €1.16bn. That sum includes the amount that Russia has already spent on special training for sailors and port infrastructures.
The deal was clinched last week at talks between Russian Deputy PM Dmitry Rogozin and French Defence Secretary-General Louis Gautier, Kommersant reports.