France panics Nato with Russian arms deal

France has become the first Nato member to sell arms to Russia, causing concern among western allies, including Britain and America.

President Nicolas Sarkozy has approved the delivery of a Mistral-class helicopter carrier worth almost £500 million. Moscow has asked for another three similar vessels, meaning the French could make £2 billion.

US Defence Secretary Robert Gates was visiting Paris today and told his French opposite number, Hervé Morin, that he was "deeply concerned". A US diplomat said: "We have a lot of questions for the French."

Russia wants the 21,300-tonne warship because its hardware was shown to be outdated during its war with Georgia in 2008. The US official said: "Eastern European states like Georgia are also very concerned. Following the war they have every reason to be."

The Mistral, which was built in the French ports of Brest and St Nazaire, is able to carry attack helicopters, tanks and troops thousands of miles.