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.

Source: bbc.com