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Talks 'continue' over warship deal

President Francois Hollande says France is continuing discussions with Russia about completing a mammoth weapons deal.

It follows France's decision to suspend delivery of a warship last year, citing Russia's role in stoking conflict in Ukraine.

"We are negotiating to find a way out of the crisis," Mr Hollande said.

The Mistral-class helicopter carrier was part of the biggest arms sale ever by a Nato country to the Kremlin. But Russia's actions in Ukraine have made the French government reconsider the 1.2 billion euro (£950 million) deal, even if it means refunding payments to Russia.

Last week Russian president Vladimir Putin warned France that Russia expects its advance payments to be returned if France fails to deliver the ship as agreed.

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