France and Russia have terminated a 1.2 billion euro ($1.3 billion) contract that had France supplying Russia with two Mistal-class amphibious assault ships, according to CNN.
Economic sanctions imposed against Russia blocked the delivery, and France has since reimbursed the country, The New York Times reported.
Tensions rose after Russia annexed Crimea last year, leading to the deal's cancellation. While Russian officials threatened to sue France for the breach, French officials confirmed that negotiations between the two countries have been resolved, according to The Los Angeles Times.
The Kremlin news service gave a statement about the deal on its website. "France has already transferred these funds," they said. "Moscow considers the Mistral question completely resolved."
Many reports showed that the termination of this contract was a long time coming, The New York Times reported. However, had it gone through, it would have been "the biggest purchase of military equipment by Russia from a Western country since the fall of the Soviet Union."
Despite this deal falling through, Russia still plans on increasing its military power. President Vladimir Putin has outlined plans to get military equipment up to date by 2025, which would allow for the spending of over 20 trillion Rubles.
