France would become the first NATO country to sell advanced military technology to Russia if a deal is sealed for the Mistral-class assault ship, capable of carrying up to 16 helicopters and a 750-strong landing force.

Georgia and the Baltic states have condemned the plan, arguing that the sale would pose a threat to their security, with Tbilisi in particular worried about regional tensions in the wake of its 2008 war with Russia.

No decision has been made and the 500-million-euro (688-million-dollar) deal could place many restrictions on Moscow, said Jean-Pierre Maulny, deputy director of the Institute of Strategic and International Relations in Paris.

"Everything will depend on the details," said Maulny. "There is nothing to stop France from imposing restrictions, from saying 'I agree to export this vessel but on condition that it is not used in a conflict with Georgia'."

The French state arms agency DGA this week said Paris had agreed to sell one warship and was considering a request from Russia for three more.

But French officials say they have yet to receive a final request from Moscow for the purchase, despite reports that a deal would crown President Dmitry Medvedev's visit to Paris in March.

The United States is unhappy with the proposed sale, and Maulny suggested that attaching conditions to the deal could go a long way to addressing Washington's concerns.

Matthew Clements, an analyst with Jane's defence review, said Russia's neighbours should not be too alarmed.

"The extra capabilities that the ship would offer should not be overstated too much. This isn't top-of-the-range advanced weaponry," he said.

"It's one ship that is going to be used to modernise an element of the Russian navy that has traditionally been out of date."

Concerns about the sales were heightened in December, when a Russian naval commander said a Mistral would have been useful in August 2008 when Russian forces were battling Georgia's military.

He said it would have allowed them to land troops within 40 minutes, rather than in the 26 hours it took them to do so.

President Nicolas Sarkozy's government has defended the plan to sell a Mistral, the second largest warship in the French fleet, arguing that Russia must be treated as a partner and not a threat to European security.

France showed off one of their own 200-metre (650-foot) vessels in Saint Petersburg in November while Prime Minister Vladimir Putin made a visit to Paris, in part to launch discussions on the deal.

Tim Fish, a naval expert at Jane's, said the deal would involve talks on export controls of technology that would determine how fully-equipped the warship might be when it arrives at port in Russia.

"The French would have to give a certain level of technology. That is the main area where the Russians will have to negotiate.

"For the Russians, it's a good decision. They are in serious trouble with their ship industry and the state of their fleet."

"For the French, it will increase their ship-building capabilities," he said, at a time when France is struggling with high unemployment in its ship yards.

France is in competition with Spain and The Netherlands for the contract.

Talks on the deal come as the governments have declared 2010 the year of France-Russia with a series of cultural events meant to bolster understanding between the two countries.

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