Done Deal: Putin, Hollande Reach Agreement Over Mistral Cancellation

Moscow considers the issue of Mistral contract to be fully settled, according to the Kremlin's statement.

PARIS (Sputnik) — Russian President Vladimir Putin and French President Francois Hollande have made a decision to terminate the contract on construction and delivery of Mistral-class helicopter carriers to Moscow, the Kremlin press service announced Wednesday.

"The president of the Russian Federation and the president of the Republic of France have made a joint decision of termination of the contract for construction and delivery of two Mistral-class amphibious assault ships, signed in June 2011," the statement said.

According to the statement, Moscow considers the issue to be fully settled. The French side has already transferred the funds to Russia, and will be able to use both vessels after the equipment is returned.

The Elysee Palace said in a statement that Putin and Hollande had reached consensus on the Mistral issue during a phone conversation earlier Wednesday.

In 2011, Russia and France signed a 1.2-billion euro ($1.32 billion at current exchange rate) contract for the purchase of two Mistral-class helicopter carriers.

Paris suspended the contract in 2014, citing Moscow's alleged participation in the Ukrainian conflict as the reason behind the move.