Russia says it is terminating a 1.4 billion-euro ($1.5 billion) deal for two Mistral-class amphibious assault ships from France.
In September 2014, French President Francois Hollande announced that the two warships would not be delivered due to Russia's "recent actions in Ukraine."
Russia’s state-owned TASS news agency quoted Oleg Bochkaryov, the deputy head of the Military-Industrial Commission, as saying on May 26, "Russia won't take them, that's an accomplished fact."
"Now there is only one discussion -- about the sum of money that should be returned to Russia," he added.
Bochkaryov said Russia planned to construct its own similar vessels, not copy the Mistral, adding that Moscow had a "slightly different ideology for the endeavor of amphibious assault."
Earlier this month, the Kremlin said France had made a formal proposal to scrap the deal.