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Published: Thursday March 20, 2014 MYT 8:05:10 PM
Updated: Thursday March 20, 2014 MYT 8:06:05 PM

Russia will demand compensation if France scraps warship sale

MOSCOW (Reuters) - Moscow will demand compensation if France cancels a deal to sell it Mistral helicopter-carrier ships as punishment for the annexation of Ukraine's Crimea region, Russian news agencies cited a defence official as saying.

"There is no doubt the Russian side will defend its rights ... and will demand compensation for all losses we might sustain if the Mistral contract is breached," state-run RIA quoted Deputy Defence Minister Yuri Borisov as saying.

French Foreign Minister Laurent Fabius said on Tuesday that Paris was considering suspending the 2011 contract for two Mistrals with an option for two more. The contract has created about 1,000 jobs in France.

(Writing by Steve Gutterman, Editing by Timothy Heritage)

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