Putin signs energy, car deals on visit to France

Accompanied by a large delegation of company executives and government ministers, Putin met his French counterpart Francois Fillon in the picturesque setting of the Rambouillet chateau outside Paris to sign a series of business deals.

“We are on the way to achieving this goal to transform our good, high-level political relations in the sphere of the real economy,” the Russian premier told a news conference.

“I think it is a real breakthrough in the economic cooperation sphere.”

France already ranks with Germany and Italy as one of Russia's top energy investors because of Gazprom's partnership with French company Total in the US$15 billion Shtokman gas field, one of the world's largest.

Energy, Car Deals

Among the flurry of deals and memorandums of understanding signed on Friday, there was an agreement for French power firm EDF to take a stake in the South Stream pipeline that will pump gas from Russian fields to Europe.

Putin also won French support for AvtoVAZ, the heavily indebted maker of Lada cars in which Renault has a 25 percent stake, under which the French carmaker will provide technology and production help as part of a deal in which Russia will put in 50 billion roubles (US$1.73 billion).

French direct investment in Russia amounts to US$10 billion, including US$1 billion made by Renault, which committed to buy a stake in AvtoVAZ in 2008.

The two government leaders also discussed Russia's request to buy a Mistral-type warship, which can be used in amphibious assaults and to carry tanks.

Fillon said France was considering the Russian request and was in principle favourable, despite the concern of some of Russia's neighbours, including Georgia, which fought a brief war with Moscow last year.

The meeting took place against a backdrop of financial turmoil in Dubai, which has created global worries of a renewed slide into crisis, but both Putin and Fillon expressed cautious optimism that the impact could be limited.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email