“The President of Russia and the President of France adopted a joint decision to terminate the contract for the construction and delivery of two Mistral-class amphibious assault ships, signed in June 2011,” the statement of Kremlin added.

During expert talks, which were held in a friendly atmosphere typical of Russian-French relations, the parties were able to reach a mutually acceptable agreement on reimbursing the Russian side for the funds paid under the contract and returning the Russian equipment and materials that had been supplied.

France has already transferred the refund and once the equipment is returned, it will obtain ownership of both ships and be able to use them. Moscow considers the Mistral issue to be fully resolved.

Elysee Palace said in a statement that Mistral-class amphibious assault ships will remain in France. It added that the Russian equipment will be dismantled and handed over to Russian side.