Methods and stakes for the establishment of French companies in Russia

There are countless reports, initial coverages and reviews dedicated to Russia. The antics of the oligarchs, the Yukos scandal, Gazprom energy weapon of the Kremlin and Anna Politkovskaya: The price of freedom, are examples of headlines that the media swamps on the public with, by shaping fantasies about the former Soviet Empire. The integration process at the WTO, the creation of a Baltic Sea pipeline, the gas dispute with Ukraine and the civil war in Chechnya ensure that Russia is inevitably talked about.

As evidenced by increasing encounters staking the diplomatic relations and the creation of the future French Chancery at Ekaterinburg, the political leaders, aware of the issues involved, took over the media and had the courage to be the ambassadors of France, in the export of values, goods and services. Although some French companies have already seized some opportunities in this country, the popularity of this region of the globe remains marginal.

Mafia laws and corruption are often cited to justify the excitement of French presence. Does this reason hide a bias? How and why have French companies settled there? What are the means of action to make Russia an effective host for French businesses? This thesis aims to shed light on the myths by showing its components as social and cultural, economic and political factors.

It is but natural, for the French to invoke the long diplomatic tradition of Franco-Russian friendship. Voltaire was one of the privileged correspondents of Catherine II, French was the language spoken during Tsarist times to the court and it is no coincidence that after the revolution of 1917, much of the immigration moved to Paris.

MLA Russia does not appear as a traditional trading partner of France, even if, at the discretion of the state of political relations, trade has been intensified between the two countries. Still, economic relations with Russia remains tainted by the suspension of the debt of the Russian state in the 1991 and 1998 financial crisis.

Since 2000, bilateral relations have steadily improved as evidenced by the frequent glimpses at the highest level. These meetings are marked with either side of a genuine desire for reconciliation and cooperation.The agreement between Mr Chirac personally and Mr. Putin illustrates this trend. A large number of bilateral treaties and agreements were adopted between the two countries in recent years to facilitate trade.

Russia is now home to about 500 French companies on its territory. Beyond its physical presence in Russia, the Franco-Russian economic relationship is also reflected in the export-import volumes and French direct investment.

The exports have grown strongly during the year 2003 from 2.341 billion euros in 2002 to 2,801,000,000 euros according to French Customs (1,6000 to 1975 million according to Russian customs) This good result in Russia passed from 2002 to 2003 from 27 th to 19 th among French clients. But this performance seems to be exceptional because it is largely related to the delivery of four aircrafts from Airbus.

In terms of market share and still in 2002, France with 4.1% of imports in Russia, was located among the 8th-largest suppliers . France, for its part is only 2.5% of Russian exports to France and is ranked 13 th among its clients. This figure is easily explained by the relative independence from fossil fuels, the main component of Russian exports, resulting from the size of nuclear power generation.

Tags: France- Russia long standing diplomatic tradition; establishment of French companies in Russia; Economic relations between the two countries