At the meeting, participants discussed the areas of focus and prospects of Russian-French relations. Priority economic cooperation issues include energy, space, joint projects in infrastructure, aviation, machine engineering, as well as cooperation in the field of education and culture.
A conversation with French Prime Minister Jean-Marc Ayrault
Meeting of the Russian-French intergovernmental commission on bilateral cooperation
The signing of joint documents
News conference by Dmitry Medvedev and Jean-Marc Ayrault
Before the meeting, Dmitry Medvedev met with French Prime Minister Jean-Marc Ayrault.
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The 18th meeting of the Russian-French Commission on Bilateral Cooperation at the level of heads of government took place.
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Several documents were signed following the 18th meeting of the Russian-French Commission on Bilateral Cooperation at the level of heads of government
Dmitry Medvedev and French Prime Minister Jean-Marc Ayrault signed the final document of the 18th meeting of the Russian-French Commission on Bilateral Cooperation at the level of heads of government.
The following documents were signed in the presence of Dmitry Medvedev and Jean-Marc Ayrault:
- Agreement between the Russian Direct Investment Fund and the French Caisse d’Epargne on the basic terms and conditions of the Russian-French investment fund’s operation;
- Agreement on cooperation in the field of energy efficiency between the RUIE Committee on Energy Policy and Energy Efficiency and the Club of French Enterprises in Russia to promote energy efficiency;
- Memorandum between the Ramenskoye Instrument Design Bureau and the Safran Group on the participation in the Ramenskoye Technology Park project;
- Strategic partnership agreement between Uralvagonzavod and Sagem Défense Sécurité;
- Agreement on investments by Danone and the Damate Group in dairy production in Russia;
- Memorandum of understanding between the Institute of Applied Physics of the Russian Academy of Sciences and Thales Optronics;
- Memorandum of understanding between the Svyaz Communication Engineering Trading House and Arelis Broadcast SAS;
- Partnership agreement between the Ginza Project and the Alain Ducasse Institute on establishing a Russian international culinary school.
A Russian-French declaration on nuclear energy was also signed at the meeting.
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News conference by Dmitry Medvedev and Jean-Marc Ayrault
Dmitry Medvedev: Ladies and gentlemen, representatives of the media, a few words on the outcome of our talks with my French colleague Mr Ayrault.
Yesterday was a wonderful day when we took part in the Moscow International Forum Open Innovation. This year, France was a partner of the forum. The programme was fairly intense and, I believe, interesting. We toured the exhibition of high-tech projects that we are working on – not all of them, of course.
Today, within the 18th meeting of our commission on bilateral cooperation, we discussed areas of focus and prospects of Russian-French relations. Priority economic issues include energy, space, and joint projects in infrastructure, aviation, machine engineering, and cooperation in the sphere of education and culture. You have just seen us sign a fairly large number of documents; in fact, we can always sign more. The only question concerns the setting of priorities.
Both delegations are satisfied with the results. Mr Prime Minister and I have exchanged our impressions briefly. All went fine, I think. As I said, there’s an impressive package of documents just signed. But most importantly, there’s a will and a potential to advance our cooperation further.
Speaking of high technologies, we’ve been cooperating more extensively, perhaps, than with any other country, in areas ranging from space exploration to the aircraft building industry. And we’ve made headway in all of these areas, specifically through cooperation on the Sukhoi Superjet 100 programme and by jointly running helicopter and air-engine manufacturing companies. Hopefully, we’ll carry on in the same vein.
French companies are running a number of infrastructural projects in this country; these have to do, specifically, with electricity networks and with the renovation of hydro-electric power stations. We’ve started the joint manufacturing of electric locomotives powered by fifth-generation engines (me, personally, I’ve had the honour to see some of the latest developments); the rail network’s running stock has been upgraded, and some long-term investments have been made in road infrastructure. This, too, is a very promising area of cooperation, I think.
The fuel and energy sector is another key area where we successfully cooperate. I won’t expand now on what has been achieved at the moment. Quite a lot has been done, obviously, and the potentialities are huge. I’m referring here to the Nord Stream, the South Stream, the joint production of liquefied natural gas, and to a whole number of other collaborative efforts.
We discussed some problematic issues, as well. But this is only natural. Unfortunately, the global economy is now having a hard time; the European economy, too, is struggling to get out of the recession, which has adversely affected our bilateral trade. This is why one of our immediate priorities should be to consolidate the basis of trade cooperation. There’s nothing really alarming. Just some decline, which we should now try to fix.
A second issue that we raised today has to do with balancing investment flows, as there’s been a noticeable inflow of French investments into the Russian Federation this year. They have grown dramatically over the last year, and are now running into the tens of billions of dollars.
As for Russian investments in the French economy, there have also been some achievements, albeit more modest. We’ve agreed to form a high-level group to discuss ways to facilitate Russian investment in the French economy. Our companies will benefit from this, I think, and so, too, will our nations, at the end of the day. We are going to work toward that goal, relying also on development institutions.
Now, let me tell you about the cultural dimension briefly. It’s obvious that our two nations have a reciprocal interest in and liking towards each other. But our mission is not just to reaffirm this over and over again, but to advance full-fledged cooperation between our universities and research centres and to promote youth and cultural exchange.
Every year, we have some nice events to share. Cultural exchange projects have become a wonderful tradition. Paris has hosted quite a few such events. The recent “Language and Literature Seasons” have been a great success, and now we are launching a new project – seasons of theatre, cinema and the fine arts. The public has many enjoyable events to look forward to.
Let me once again thank my French counterpart, Mr Ayrault, for the productive and friendly consultations that we’ve just had. We’ve spent quite a lot of time together; last night, over dinner, we discussed a whole variety of domestic and international issues, along with dwelling on life in general. And earlier today, we had those serious, full-fledged consultations.
Thank you very much indeed. I now pass the floor to Mr Ayrault.
Jean-Marc Ayrault (via interpreter): Thank you Mr Prime Minister. First of all, I’d like to thank my Russian counterpart, Prime Minister Dmitry Medvedev, for hosting our bilateral intergovernmental commission’s 18th session.
We get together annually to review our cooperation and to try to give it a new impetus. Last November in Paris, I had the pleasure and the honour to meet you, Mr Medvedev, for the first time. I think that to be able to work efficiently, people should know each other well and have direct contact. This is precisely what we did in Paris last year, as well as during my current visit to Moscow. Yesterday’s informal but delicious diner hosted by you, Mr Medvedev, was very helpful in this respect. And it was a pleasure to share that meal with you. This kind of contact is very important for cooperation, I think. It wouldn’t be an overstatement to say that the 18th session of the Intergovernmental Commission for Bilateral Cooperation is instrumental in advancing our relationship. Let me once again express my thanks to you, Mr Prime Minister, and to our delegations for their efforts. Indeed, our latest session made it clear that both parties had been working in a productive and meaningful way.
It is no secret that Russia and France are also tied together with historical bonds. Indeed, we have similar cultures, shared views, and common interests. That friendship is sincere; it really helps us discuss things openly and frankly, as befit real friends. This was the way I spoke as we discussed current issues of concern.
France adheres to certain values. Our partnership has expanded and consolidated dramatically in recent years. We know that French exports to Russia have increased five-fold over the past decade, with France becoming Russia’s second largest European trade partner. Our bilateral cooperation develops when both parties have something to gain, and our ambition is to boost it even further – that’s where intergovernmental commissions like ours can prove instrumental. It’s important to identify promising contracts and new projects that can nurture future cooperation.
During our meeting, both Mr Medvedev and I had the opportunity to appreciate the progress that we have made; the plenary session made our achievements all the more evident to us.
We have some very promising projects in many fields. You’ve already cited a few examples. Let me just add the Greater Moscow project and everything related to the creation of an environmentally friendly urban environment. I’ve discussed this project with Moscow Mayor Sergei Sobyanin by the way.
I’m also referring to transport infrastructure, including the high-speed rail line between Moscow and Kazan, as well as to aircraft manufacturing and aerospace. As you know, we have made some achievements in this sector already, including the Sukhoi Superjet 100, the launch of the Soyuz from the Kourou launch pad, and so on. And speaking of defence, we just launched a new helicopter carrier, the Vladivostok, a few days ago.
We are cooperating on projects such as Total, EDF, and Gaz de France-Suez in the energy sector, as well as in auto manufacturing (I visited the Renault Avtoframos plant yesterday) and in high-tech, also discussed at the forum.
I can say that in all these areas, French companies are interested in contributing to Russian modernization, working hand in hand with local businesses, including mutual investment projects.
Our bilateral relations are not limited to economic cooperation though. We’d like to broaden interaction between our universities and research centres, through the use of academic exchange programmes among other things.
Our countries are both permanent members of the UN Security Council, so we bear part of the responsibility for what happens in the international arena. We have brought up some related issues for discussion.
Speaking of the developments in and around Syria, we believe this is a tragic situation that can only be resolved through diplomacy. This is why we need to use our energy to organise a Geneva II conference. Let me emphasise again that for France, an alternative solution needs to be found somewhere between Bashar al-Assad and the jihadist groups. This is why we should be sure Syrian coalition forces attend the conference and that there is humanitarian access to certain zones for delivering aid to the Syrian people.
I would also like to thank Mr Medvedev for Russia’s assistance with France’s military intervention in Mali. This was dictated by the need to preserve the country’s democratic institutions, and we really appreciate your understanding and support in this.
In conclusion, I’d like to say that at my forthcoming meeting with Mr Putin, I’m going to convey greetings from the President of the French Republic.
As you know, the most recent G20 summit was hosted by the city of St Petersburg, and the city did a great job organizing it. We intend to further advance on the G20 summit’s action plan so as to achieve greater financial and economic stability in the world and to more effectively deal with tax havens and profiteering. We now need to sum up all that work, which is an obvious political achievement for Russia, France, and for our bilateral long-term cooperation. Mr Prime Minister, ladies and gentlemen, thank you all for your efforts.
Question: Lana Samsoniya, Interfax. Mr Medvedev, Mr Ayrault, I would like to clarify – what prospects for bilateral military and technical co-operation do you see? Mr Medvedev, you mentioned the company Superjet in your opening speech. I would like to know whether the French side is interested in purchasing Superjets.
Dmitry Medvedev: Let me say a couple of words then. Next, if the Prime Minister wants, he can elaborate. Speaking of military and technical co-operation, we do indeed have good military and technical co-operation with France, and we have recently had a number of large transactions in this vein. Perhaps the most ambitious and most serious deals are for the aircraft carriers and ships that we order in France. I mean the Mistral, which will be renamed in our country the Vladivostok and the Sevastopol. In fact, this project is already in full swing. I hope that this co-operation will be the basis for co-operation in other areas, especially since we are talking about serious co-operation issues, issues which affect sensitive technology. I hope that both we and our French partners will benefit.
You mentioned the Superjet project. This is also an example of high-tech co-operation that has developed in recent years. In the near future, a large number of these aircraft will be produced. There are more than 20 that have already been produced, and indeed they are contracted in different countries. We have contracts for more than 170 units of this aircraft. We have established very serious co-operation with our French partners, and this is, in fact, a joint project.
Today we discussed some financial issues related to insurance, but we hope that hereafter, this aircraft will become a fixture in the markets of Latin America and the Asia-Pacific region, and it will also be available for our partners in Europe. So I hope that one day it will come to France, regardless of the fact that, of course, the European market is saturated with other types of aircraft.
Jean-Marc Ayrault (via interpreter): Yes, of course, the prospects for the European market are substantial, but the Superjet 100 is a joint production, a product of our collaboration. I believe that France should be proud of this success, since it has contributed to it.
In regard to co-operation in the military sphere, as you mentioned, Mr Medvedev, I've also mentioned the launch in my home region, in Saint-Nazaire, of the first Mistral-class LHD (landing helicopter dock), and others will be built. We also work in the helicopter manufacturing field, and every time we speak of this, it needs to be beneficial for both parties. We must look for solutions that allow French and European industry to co-operate with Russia, and that allow Russia to benefit from this co-operation in terms of economic activity and employment.
Military-technical co-operation is also important in terms of our co-ordination in the fight against terrorism and drug trafficking. We mentioned these two points at the bilateral meeting; it is very important for our security.
Question (via interpreter): BFM TV, France. You spoke about the friendly, sincere and deep relations between France and Russia. You said that you have discussed all relevant issues. Currently in France, there is a lot of talk about Greenpeace and the detention of a French citizen. I would like to know whether you broached this subject in talks with Mr Medvedev, and whether he would make a gesture of good will towards this French citizen.
Jean-Marc Ayrault: Yes, of course, as I said, we discussed all the issues – human rights issues and legal issues. I shared these concerns with Russia. I'm not going to teach Russia. I just said that Russia is a party in many international conventions and a member of the Council of Europe, and now many Russian citizens as well as citizens of other countries, including France, may appeal to the European Court of Human Rights. It is very important to promote these things.
In regard to Greenpeace, yes, this operation, which this non-governmental organisation undertook with respect to the oil platform, resulted in some arrests. I discussed the situation of detained French citizen Mr Francesco Pisanu with Mr Medvedev. I asked whether, in addition to the judicial proceedings now in progress, we could expect a humanitarian gesture with respect to him because in France, we are very concerned about this issue, and it excites French public opinion. I discussed all of these issues quite frankly with Mr Medvedev.
Dmitry Medvedev: I’ll say a few words on this subject since it concerns us as well. We did discuss issues related to the Greenpeace ship incident in an open and friendly manner. I drew the attention of my colleague, the French Prime Minister, to two things. First, these kinds of activities are dangerous. The actions of any organisation that is trying to interfere with technologically intricate and dangerous processes, such as oil production, gas or other energy resources, are filled with hazards. Even while sharing environmental concerns over a range of issues on our planet, Russia cannot support any activity that can damage the environment or that poses a threat to people in general. We know what happened at similar facilities recently, for example in the Gulf of Mexico.
These kinds of facilities are like a powder keg and nobody has the right to violate the laws that govern them even with the best of intentions.
I visited a similar facility in the Caspian Sea not long ago. I’d like to tell anyone who is unaware of how they operate – every employee of an oil platform is a staff fireman. This production process is really very complicated and dangerous. Everyone, including all those that are worried about the environment should be aware of this.
The second point I made in my conversation with the French Prime Minister is that the France and French people should have no doubt that we will review this case in strict conformity with Russian law, proceeding from the considerations of justice and our statutes. We hear the concerns voiced by France and many other countries. One thing is certain – we guarantee compliance with Russian law.
Question: Good afternoon Mr Medvedev and Mr Ayrault. I’m Svetlana Kalmykova from the Voice of Russia radio station. Mr Medvedev, in your opening remarks you said the Eurozone and the global economy are in a difficult position. Did you discuss the Eurozone crisis during your talks? Does the Russian Government have any plans to reduce the amount of euro reserves? What can you say about the Russian economy’s margin of safety against the backdrop of the crisis?
Dmitry Medvedev: If I answer all your questions in detail, I’ll have to deliver about a 40 minute lecture. I’ll be brief: yes, we discussed this; no, we aren’t planning any major changes – I’m referring to the proportions of our gold and currency reserves. Let me remind you that over 40% of our reserves are in euros, about 45% in dollars and the rest in other currencies, such as the pound sterling.
Despite all the current difficulties of the European economy and talk about a Eurozone crisis, we are supporting the processes that Europe is undergoing with a view to improving its position. We appreciate the position of France in this respect because we believe that the euro is a good instrument that promotes a better balanced international monetary system. Moreover, practically half of our trade is with European Union countries. Therefore, we are interested in the stability of the European economy. It is beginning to pick up, and we are hoping for further improvement. Needless to say, we want to see the euro alive and back to normal.
As for Russia, our economy has enough margin of safety. Our macro-economic indicators are common knowledge – low debt, control of inflation and fairly decent employment levels. Our unemployment rate is low. So we do not expect any serious problems but had to take a number of decisions to balance our budget considering the general condition of the global economy. I’ll be happy to answer this question in more detail at another opportunity.
Jean-Marc Ayrault (via interpreter): I’d like to add a few words because both President Hollande and I assumed office in 2012. From the very start we took measures to stabilise the Eurozone and return to economic growth. A year ago, we were very worried about the euro’s future but this is not our concern now. The governments were wise enough to take the necessary measures for its stabilisation and we are establishing a bank union that we deem necessary. We spoke about this at the European Council on October 24-25. In other words, the context has changed compared to what it was a year ago. There are already signs of growth and we’ve created guarantees for 2014. This is good for Europe, good for France and good for relations with Russia and for our other economic partners. So I think it’s important to assure all those who are still worried, that Europe, France in particular will do everything necessary to achieve stabilisation and create conditions for economic growth with a view to reducing unemployment. This applies to France, and not just France, but this is a top priority for our government today.
Question (via interpreter): Isabelle Torre, TF1. You’ve talked about some of the main questions related to French-Russian relations. My question is more for Mr Ayrault. One of your ministers, Marylise Lebranchu, is concerned about the manifestation due in Brittany… Do you share her concern?
Jean-Marc Ayrault (via interpreter): Let me remind you that France is a democracy where people have a right to hold manifestations. If men or women want to make a point they are fully entitled to do so. Also, we cannot develop if we create a spiral of violence. I’d like to hope that the manifestation in Kemper will be peaceful. We believe this is a desire of the overwhelming majority of the French people, in particular people in Brittany that want their land to build confidence. To some extent the issue is rooted in economic difficulties and the agro-industrial sector. I believe the decision I made and announced on Tuesday has alleviated tensions and created the grounds for dialogue. And I think the economic, social and political forces that are willing to take part in a republican dialogue whenever obstacles arise in the way of building a better future for the people, should sit down at the negotiating table.
The prefect of the region has already accepted many initiatives and new ones will be coming. Aside from manifestations it’s important for all of us to sit at the negotiating table and start working to consider issues that create difficulties or worries… In every similar case we’ll try to find a negotiating table. We shouldn’t act as a fire brigade. We must take political action rather than sit and wait. When you take action only in emergency, matters are bound to get worse. My government has a completely different position. This is a long-standing position linked with political responsibility and the liability of some economic executives who missed some developments and took no action. I think everyone needs to talk about this now that the conditions are there. I hope very much that after the manifestation we’ll gather the groups that will deal with resolving these problems, promoting solidarity between regions and people, and helping the distressed regions, including Brittany overcome the current difficulties.
Dmitry Medvedev: I have nothing to add here. Thank you very much.