Defence Minister Jean-Yves Le Drian said Tuesday that France would decide next month whether to proceed with the controversial sale of two Mistral warships to Russia even as Russian officials said the sale would go ahead on November 14.

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France had long resisted pressure from the United States and its other allies to call off the controversial 1.2 billion euro ($1.58 billion) deal, before deciding last month to suspend the sale by pushing back the original end-of-October delivery date.

At the time, French President François Hollande said that he would only hand over the first of the two carriers – the Vladivostok – if there was a lasting truce and a political settlement in Ukraine.

But a September 5th ceasefire agreement between Ukraine’s government and pro-Russian separatists has been tenuous at best, with frequent mortar fire along the frontline in the country’s east.

“[President Hollande]... said that if the political conditions did not change he did not envisage giving the authorisation for delivery,” Le Drian told reporters on Tuesday.

He declined to say whether the conditions had now been met, but said the president would make a decision "during November".

French officials are remaining tight-lipped over the fate of the Mistral contract, with Russia warning that it will seek damages if it is cancelled or suspended.

Some of France’s NATO allies fear that if the deal goes through, it would grant Russia access to advanced technology, thereby strengthening it militarily.

With as many as 1,000 jobs at stake in France, there is immediate concern at home. But more worrying for the government is what impact the cancellation of the contract would have on future defence export deals and on a defence industry that employs 40,000 people.

(FRANCE 24 with REUTERS)

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