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Energy, culture on tap for Medvedev trip to France

Source : AP
Last Updated: Mon, Mar 01, 2010 20:10 hrs

Russia and France pursued their burgeoning courtship Monday with a formal state visit by Russian President Dmitry Medvedev to Paris, which is angling to sell Moscow a massive warship and secure stakes in pipelines pumping Russian gas to western Europe.

Medvedev's trip appears less about breaking new ground than about tightening ties and expanding on a slew of energy and manufacturing contracts firmed up by his prime minister, Vladimir Putin, in France last November.

France under President Nicolas Sarkozy has been eager for a larger chunk of trade with Moscow, despite diplomatic concerns about Russia's sway over its smaller neighbors in eastern Europe. France has competed with Germany in particular for Russian investment deals in energy and high-speed trains.

A key deal pending between France and Russia is for the sale of a Mistral-class warship — which would be the biggest arms sale ever by a NATO country to Russia — but a final accord seems unlikely during Medvedev's state visit. France is ready to sell one of the ships, but talks are ongoing on a Russian request for three more.

Such a ship, which could carry up to 16 attack helicopters, would allow Russia to land thousands of troops quickly on foreign soil. The possibility has alarmed Georgia as well as the three Baltic countries in NATO — Latvia, Lithuania and Estonia.

French energy companies want to take advantage of Medvedev's visit to gain better access to the world's biggest natural gas producer.

In a joint statement before Medvedev's arrival French natural gas company GDF Suez and Russian counterpart Gazprom said they had signed a memorandum of understanding by which the French company will acquire a 9 percent stake in the North Stream AG natural gas pipeline planned to pipe gas from Russia under the Baltic Sea and to western Europe.

The two companies also said they have begun talks on a deal for the state-controlled Russian company Gazprom to supply GDF Suez with up to an additional 1.5 billion cubic meters of natural gas a year from 2015.

French investments in Russia last year outstripped those of the United States for the first time, for a total of $10.4 billion, Medvedev aide Sergei Prikhodko said, according to Russian news agencies.

Just before Medvedev arrived in Paris on Monday, French carmaker Renault SA announced it had doubled capacity at its Moscow plant, to help take advantage of Russia's cash-for-clunkers program starting next week.

Culture is expected to be a centerpiece of Medvedev's Paris sojourn: The Louvre Museum is unveiling a sweeping exhibit of Russian art from the dawn of the Russian Orthodox Church more than a millennium ago to western-gazing canvases painted under 18th century leader Peter the Great. Medvedev and Sarkozy will inaugurate the exhibit Tuesday.

Medvedev leaves Wednesday.

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Associated Press writers Nataliya Vasiliyeva in Moscow and Greg Keller in Paris contributed to this report.



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