French President Francois Hollande (Photo: Wikipedia)

France has offered to refund about 785 million euros ($865 million) besides re-export rights for cancelling the Mistral amphibious assault ship deal with Russia but the latter has demanded 1.163 billion euros ($1.32 billion).

Various Russian media reported this morning that that Paris had handed its proposals to Russia on ‘ways’ to terminate the contract for two Mistral-class helicopter carriers to the Russian Navy.

Moscow does not intend to issue a re-export permit before its full money is returned, the reports said. France and Russia had signed a $1.5 billion deal for the two ships and Russia has paid up $1.1 billion so far.

On April 22, French president Hollande said Paris would return Moscow's payment for the warships if the contract is terminated. There were subsequent reports that Paris want to sell the disputed ships to China or India.

Subsequently Paris denied the reports to resell the ships to third countries.