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World

France accepts Australian cash compensation deal to end submarine spat

Australia France United States Anthony Albanese Naval Group Emmanuel Macron Scott Morrison Paris Sebastien Lecornu Canberra

French constructor Naval Group was selected by Canberra in 2016 to provide 12 diesel-powered submarines, similar to the group's Barraccuda class vessels. © Naval Group / AFP

Australia on Saturday unveiled a substantial compensation deal with French submarine maker Naval Group, ending a contract dispute that has soured relations between Canberra and Paris for almost a year.

Australian Prime Minister Anthony Albanese said the French firm had agreed to a "fair and an equitable settlement" of 555 million euros in compensation for Australia's termination of a decade-old multi-billion-dollar submarine contract.

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