Russian President Vladimir Putin and French President François Hollande reached a deal on termination of a contract for construction and delivery of two Mistral class helicopter carriers signed in June 2011, the Kremlin press service reports.

Under the deal, France is to reimburse Russia funds paid under the contract, as well as return Russian-made equipment and materials.

After handing over the equipment to Russia, France, which has already transferred the said funds, will acquire ownership rights and be able to dispose of the two warships.

Russia and France signed a EUR 1.2 billion contract for supply of the Vladivostok and Sevastopol, Mistral class helicopter carriers, in 2011. Russia paid for construction of the first ship and expected it to be delivered in November 2014.

Last fall, French President said that the deteriorating situation in Ukraine prevented him from authorizing delivery of the helicopter carriers to Russia. In its turn, Moscow claimed it would demand that France either supply or refund the cost of the warships.