InfoAnda - Victory for Putin as France signs gas pipeline deal

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Victory for Putin as France signs gas pipeline deal AFP - Saturday, November 28 Send IM Story Print RAMBOUILLET, France (AFP) - – Russian Prime Minister Vladimir Putin won another victory for his aggressive energy diplomacy strategy Friday, signing a deal bringing French investment to a pipeline project. In a successful trip that worried Russia's nervous neighbours, Putin also secured French investment to save the struggling Lada car maker and a promise that France will consider selling Moscow a huge amphibious assault ship. "We have embarked upon complete cooperation with Russia," French Prime Minister Francois Fillon declared, as he and Putin addressed reporters after talks outside Paris with ministers and energy executives. Georgia and the Baltic states have expressed concern over Russia's bid to buy a Mistral-class warship -- an unprecedented military deal between Moscow and a NATO member -- but Fillon insisted it remained on the table. Fillon said that, while "perfectly respecting" Georgia's position, France wants a "common economic and human space between Russia and the European Union" and is negotiating with Moscow to seek a common European security strategy. "France is open to this cooperation with Russia, including in defence," he said, confirming that Paris is studying Russia's request to buy the ship. The gas accord hooks another Western power into Moscow's plan to build two huge undersea pipelines to European markets, bypassing former Soviet satellites in eastern Europe and increasing Western reliance on Russian fuel. "An accord has just been signed between EDF and Gazprom on the entry of the French company in a great international transport project, the construction of a gas pipeline under the Black Sea," Putin said. According to Gazprom, French energy giant EDF will take a 10 percent stake in the project, which is designed to pump gas from central Russia into Italy and southeastern Europe, bypassing Ukraine and Belarus. Italy's ENI is already a partner in South Stream, while German firms are working with Russia on a second pipeline, Nord Stream, that runs under the Baltic Sea to western gas markets, again bypassing eastern Europe. The French energy giant GDF-Suez confirmed it was in talks to buy a nine percent stake in Nord Stream "which should contribute to the continuous strengthening of cooperation between Gazprom and GDF-Suez." Meanwhile, in a third victory for Putin, French auto maker Renault signed a deal on to rescue its struggling Russian partner Avtovaz with 240 million euros (360 million dollars) in new investments. The arrival in St Petersburg this week of the Mistral, a French naval command vessel of the type that Putin hopes to buy, increased regional fears that Russia is seeking to project its might beyond its borders. The Mistral is a 21,000-tonne, 200-metre (650-foot) amphibious assault ship that can carry heavy-lift helicopters, landing craft, tanks and up to 900 commandos. It is the second largest vessel in the French fleet. Russia wants to buy one copy of the Mistral new from France and reportedly may then build four more under licence. European Union members Lithuania, Latvia and Estonia have expressed concern. All three won independence in 1991 on the break-up of the Soviet Union still have tense relations with Moscow. "France is our strategic EU and NATO partner and we hope France will make an appropriate decision," Latvian foreign ministry spokesman Rets Plesums said. Senior Latvian defence ministry aide Airis Rikveilis told the Baltic News Service that Riga was planning "serious consultations" with NATO on the issue. Georgia, an EU and NATO candidate state in the Caucasus, fought and lost a short but fierce war last year with Russia over two breakaway regions. Georgian expatriates and sympathisers demonstrated in Paris during Putin's visit, and on the eve of the talks Georgian Foreign Minister Grigol Vachadze expressed grave concern over the warship sale at a Paris seminar. 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