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Russia To Get More Than $1 Billion For Aborted Mistral Deal

The sale of two Mistral-class helicopter carriers to Russia was canceled because of the Kremlin's role in the conflict in eastern Ukraine. (file photo)

French Defense Minister Jean-Yves Le Drian says Paris will pay Russia about 1.2 billion euros ($1.32 billion) for the canceled Mistral warship deal.

Le Drian said on radio RTL on August 6 that the issue had been discussed by French President Francois Hollande and Russian counterpart Vladimir Putin the previous day and that "there is no further dispute on the matter."

Le Drian said the initial price for the two Mistral helicopter-carrying warships was 1.2 billion euros, but France will actually pay a sum less than that because the ships were unfinished and the contract was suspended.

He added there were no penalties against France within the 2011 contract, which was first postponed in 2014 and then canceled because of Russia's role in the conflict in eastern Ukraine.

Le Drian said several other countries had expressed interest in buying the two warships, which Russian officials had named the Vladivostok and the Sevastopol.

Based on reporting by Reuters and TASS