Russia, France Fail to Agree on Mistrals Deal During Talks in Moscow

French and Russian negotiators were unable to achieve any progress on the Mistral issue when the French delegation visited Moscow on Thursday, a source familiar with the situation said Friday.

MOSCOW (Sputnik) — France has laid down "absolutely unacceptable" terms in the negotiations for the delivery of the long-delayed Mistral helicopter carriers to Russia, a Russian source familiar with the situation told RIA Novosti Friday.

"The talks in essence have not even started, because the French have put forth absolutely unacceptable conditions for us."

Without elaborating on the exact terms in Russian-French negotiations, the source said they included the "annulment of bank accounts."

"A delegation of French experts involved in Mistral talks visited Moscow yesterday, but the negotiations came to nothing," the source said, adding that the delegation returned to Paris the same day.

Russia and France signed a $1.3 billion deal for two Mistral-class ships in 2011. The handover of the first vessel was scheduled for November 2014, but French President Francois Hollande put the delivery on hold over Moscow's alleged involvement in the Ukrainian internal crisis.

It was reported earlier this month that Paris had proposed to terminate the contract, offering to pay some 785 million euros ($865 million) back, on the condition that Russia allows France to sell the ships to a third party with Moscow denying the offer, since the costs and losses Russia associated with the breach of the deal are currently estimated at about 1.163 billion euros.

The Mistral-Class Helicopter Carrier