Russia, France sign 25 deals; EDF to back pipeline

RAMBOUILLET, France (AP) - Russian businesses and the government signed at least 25 agreements with French companies, Russian Prime Minister Vladimir Putin announced Friday, proclaiming "a real breakthrough" in economic relations between the two nations.

French electricity giant EDF will join Russia's Gazprom in supporting the South Stream gas pipeline under the Black Sea and energy utility GDF Suez announced progress Friday in taking part in the Nord Stream pipeline.

Both pipelines compete with Nabucco, a proposed pipeline backed by the United States and the European Union that would bring natural gas to Europe from the Caspian Sea region, competing with Russian gas supplies.

French carmaker Renault also said it was stepping in to help the struggling Russian auto producer Avtovaz with a euro240 million ($362 million) contribution in technology transfers, production machinery and technological expertise.

Putin called France a "special partner" and told a news conference after meeting with French Prime Minister Francois Fillon that 25 agreements had been signed.

Henri Proglio, the new head of state-controlled Electricite de France, confirmed that EDF was taking a 10 percent stake in the South Stream pipeline.

Although no agreement was signed, Gazprom head Alexei Miller and executives of France's GDF Suez discussed energy cooperation and progress was made on negotiations for GDF to take a minority 9 percent stake in the Nord Stream proposed gas pipeline under the Baltic Sea.

Besides the EDF and Renault, other major agreements signed included one between France's Total oil giant and Russia's Zarubezhneft, a pharmaceutical agreement and one on electricity.

Putin's two-day trip, however, has been overshadowed by the possibility that France was considering the lucrative sale of a military amphibious assault vessel - a prospect that has made some of Russia's closest neighbors nervous.

Fillon confirmed Friday that France was considering selling a Mistral-type warship that can carry 16 attack helicopters, and said France was open to military sales to Russia despite other nations' concerns.

"France is open to this cooperation, including in the defense sphere," Fillon said. For his part, Putin said Russia had not yet decided whether it would buy the Mistral, saying there were other competitors. He did say Russia reserved the right to use its military equipment as it saw fit.

"We will use the weapons where we think it is necessary," Putin said, remarks that are bound to cause further concern among former Soviet republics bordering the Baltic and Black Seas.


Putin had breakfast Friday with former French President Jacques Chirac, but did not see President Nicolas Sarkozy, who was in Brazil, or the French defense and foreign ministers. He was traveling with several key Russian ministers and a large delegation of business executives.

Putin and Fillon also discussed global warming and said the French and Russian positions were "extremely close" ahead of the Dec. 7-18 U.N. climate change conference in Copenhagen.