Tight economic dialogue between France and Russia

Posted on 22nd December 2021 17:34Updated December 22nd. 2021 18:37

Business continues during the showdown. Tensions over Ukraine between Russia and NATO appear to be rising, with 125,000 Russian soldiers deployed not far from the border of the western neighbors, and Russian Minister of Economic Development Maxim Lechetnikov co-chaired on Tuesday. Served. The annual meeting of the French counterpart, Bruno Le Mer, the Economic, Financial, Industrial and Commercial Commissions of France and Russia.

According to the Kremlin, a conference held this year between Moscow and the West in the context of “an unprecedented crisis since the 1962 Cuban rocket crisis.” Everyone is aware of the risk of a sudden invasion of Ukraine, which causes sanctions “on an unprecedented scale” from the United States and the European Union.

However, this military explosion scenario appears to have been postponed for several weeks on Wednesday with a statement by Russian Foreign Minister Sergeĭ Viklov that the first negotiations between Washington and Moscow on European security issues will take place. Earlier this year.

Sanctions impose penalties on everyone, including companies in the countries that determine them.

Maxim Lechechinkov, Minister of Economic Development of Russia

Nonetheless, in the worst case, Maxime Rechetinkov estimates in “Echos” that “sanctions penalize everyone, including companies in the countries that decide them.” The Russian economy has shown its resilience in recent years by effectively addressing Western sanctions. And the world is big, and we assume that sanctions usually lead to trade diversion to other countries. Obviously, the current situation is saddening us. Because we consider European countries to be our historic partners.

Participants argued that the geopolitical crisis also weighed heavily on committee meetings. One of them even believed that it didn’t work. A sequence of ministers was dispatched in the 30th minute, a tense exchange took place in Ukraine, and a very restricted medical certificate was needed for Covid. From French executives working in Russia, even if they have lived there for a long time. As expected, no agreement has been reached between the parties.

France is very active in Russia

Maxime Rechetinkov wanted to be optimistic, but emphasized the quality of bilateral cooperation, and if France is Russia’s fifth foreign investor, it is the first in the number of jobs created. I emphasized. He added that bilateral trade recovered 68% in the first 10 months of 2021 after the Dark Year marked by Covid in 2020. Achievements in the nuclear industry, aircraft engines, automobiles, etc. French companies are easier to set up in Russia than vice versa, so they want to build more strategic relationships and reduce investment imbalances. French companies have access to special economic zones, simplified investment arrangements and no discrimination against French and foreigners in general. »»

Russia also relies heavily on cooperation in decarbonization efforts. This may be a surprise to countries at the forefront of fossil fuels in the world. But Maxim Lechetnikov believes that “development of a low-carbon economy is not as threatening to us as an opportunity.” The fossil fuel industry’s carbon dioxide emissions are lower than its competitors, not to mention the progress made over the last two decades in the chemical industry’s construction. Rosatom has signed two contracts with Air Liquide to develop a low-carbon project in Sakhalin and EDF in Kaliningrad.