France will press ahead with a 1.2 billion-euro (983 million pounds) contract to sell Mistral helicopter carriers to Russia because cancelling the deal would do more damage to Paris than to Moscow, French diplomatic sources said on Monday, reports Reuters.
France's move illustrates the limitations of European Union sanctions meant to punish Russia for its annexation of Crimea and dissuade Moscow from intervening in east Ukraine.
The United States has been pressing France, Germany and Britain to take a tougher line against Russia. For France, this would mean at least delaying the Mistral contract.
For Britain, closing its mansions and bank vaults to magnates close to Russian President Vladimir Putin. For Germany, initiating gradual steps to reduce dependency on Russian gas.
France had said it would review the deal in October - but not before. However, French diplomatic sources said on Monday the 2011 contract with Russia for two Mistral helicopter carriers, with an option for two more, would not be part of a third round of sanctions against Moscow.
"The Mistrals are not part of the third level of sanctions. They will be delivered. The contract has been paid and there would be financial penalties for not delivering it."
Read more of this report from Reuters.