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Russia, France reach agreement on termination of Mistral deal

Xinhua, August 6, 2015 Adjust font size:

Russia and France have agreed to terminate the contract on the delivery of two Mistral helicopter carriers to Russia which has been suspended due to the Ukraine crisis, the Kremlin announced Wednesday.

"Russian President Vladimir Putin and French President Francois Hollande have made a joint decision on the termination of the contract for construction and delivery of two Mistral-class amphibious assault ships," said a statement of the Kremlin press service.

The statement added that the French side has agreed to pay back the money Russia had transferred under the contract.

Russia and France signed in 2011 a 1.2-billion euro (1.32 billion U.S. dollars) contract for the purchase of two Mistral- class helicopter carriers.

However, last November the French side suspended indefinitely the delivery of the first of two Mistrals to Russia because of the continued Ukraine crisis and Russia's alleged role in supporting independence-seeking insurgents in eastern Ukraine. Endite