France has agreed to sell two Mistral helicopter carriers to Egypt after their sale to Russia was cancelled in August and will not incur a financial loss in the transaction, government spokesman Stephane Le Foll said.
Cairo has sought to boost its military power in the face of a two-year insurgency based across the Suez Canal in the Sinai peninsula and fears the conflict in neighbouring Libya could spill over. Egypt's allies are also keen to burnish its image in a region beset by turmoil.
"They agreed on the principle and the terms of the acquisition by Egypt" of the two Mistral warships, President Francois Hollande's office said in a statement after he spoke to his Egyptian counterpart Abdel Fattah Al-Sisi.
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