Australia pays the French shipbuilder Naval Group millions in compensation to end contractual disputes after a failed submarine deal. As the new Australian Prime Minister Anthony Albanese announced on Saturday, the company will receive 555 million euros to dissolve a multi-billion dollar contract to buy French submarines that has been in place for years.

Albanese spoke of a “fair and just agreement”. The submarine dispute had strained relations between Canberra and Paris for months.

Australia, the United States and Britain formed an Indo-Pacific alliance last September that includes building nuclear submarines for Australia. The fact that Australia then canceled an order for twelve diesel-powered French submarines caused outraged reactions in Paris.