French President Francois Hollande Tuesday decided to suspend the delivery of the first of two Mistral helicopter carriers to Russia "until further notice", because of the continued crisis in Ukraine which could put the region's security at risk.
"The situation in the east of Ukraine still does not allow for the delivery of the first BPC (helicopter carrying and command vessel)," a presidential statement said, reported Xinhua.
"(Hollande) has therefore decided that it is appropriate to suspend, until further notice, examination of the request for the necessary authorisation to export the first BCP to the Russian Federation," the statement said.
The decision to suspend the 1.2 billion euro deal (about $1.5 billion) was based on a worsening situation in Ukraine despite diplomatic efforts to end the month-long crisis peacefully.
But the Eurozone's second largest power, already dogged by feeble growth and high budget deficit, could face possible compensation claims if it doesn't deliver the Mistral carriers, a move likely to further hamper the government's efforts to put the country's finances back in order.
