Russia, France Reach Compensation Over Cancelled Mistral Warships' Deal

Russia has reached a compensation deal with France for the non-delivery of two Mistral warships after eight months of negotiation.

"The negotiations are completely finished, everything has already been decided, both the time-frame and the amount," President Vladimir Putin's adviser for military and technical cooperation, Vladimir Kozhin was quoted as saying by various media today.

"I hope we will sign the agreement on the termination of the contract as soon as possible," he added.

The compensation could amount to some 1.16 billion euros ($1.27 billion) and a deal definitively inked in the first ten days of August, Russia's business daily Kommersant reported quoting anonymous source.

The first ship was due for delivery in 2014, while the second was to be delivered this year.

The Paris' decided in November to put the $1.3-billion deal on hold as the West imposed sanctions on Russia over its annexation of Crimea and alleged backing for separatist rebels in Ukraine.

French President Francois Hollande said Monday that he would take decision in the upcoming weeks whether or not to discard the controversial contract to supply the two warships to Russia.

Hollande had said previously this year that the conditions for the delivery were "still not right" and suggested that only the full implementation of a tenuous cease-fire in eastern Ukraine could make Paris revisit the situation.