France has announced it is to delay the delivery of a Mistral naval assault ship to Russia.
Paris has blamed Moscow’s action in Ukraine as the reason.
France has come under severe pressure from its allies to halt the sale of the two advanced vessels.
The contract is the most significant Western arms deal with Russia currently on the books.
The Mistrals can transport helicopters, troops and armoured vehicles.
President Francois Hollande said despite the prospect of a peace deal the “conditions under which France could authorise the delivery of the first helicopter carrier are not in place.”
The decision will be reviewed in November.