22
RUSSIA - FRANCE
F
ranco-Russian trade relations
seemhave become buoyant again
and grew by 26% in 2017. What
is your analysis of the economic
situation?
While the world economy should
increase by 3.1% in 2018, according
to the latest World Bank report in
January 2018, the 2018 forecast
concerning Russia has been revised
from 1.7% to 1.5 %.
For 2019 and 2020 growth is estima-
ted at 1.8% per year. If this growth is
moderate, it is better than it was in
2015 and 2016, when the country
underwent two years of recession.
Russia seems to be currently benefit-
ting from the increase in raw
material prices, and especially the
price of oil, which has had a positive
impact on the economy.
Trade between France and Russia
bounced back strongly in 2017, with a
26 % increase compared to 2016.
French imports of Russian products
increased by 37 %, while French
exports to Russia rose by 14%. In
2017, 82 % of Russian exports to
France consisted of oil and gas and
refined oil products.
On the other hand, French exports to
Russia are much more diversified.
They are mostly high added value
products, such as transport equipment,
especially aeronautics, whose exports
were 1.4 billion euros last year. In
2017, chemical products, perfumes,
cosmetics and pharmaceutical
products represented 607 million
euros of French exports to Russia.
Many French companies are active in
Russia. What are currently the high-
growth sectors for French companies?
According to the latest results
available for France, there were 538
subsidiaries of French companies
operating in Russia in 2014, which
had revenues of nearly twenty-seven
billion euros and had a little more
than 156,000 employees.
France is therefore the number one
foreign employer in the country.
There are said to be around 1,200
companies with French economic
interests doing business in Russia.
During the twenty-second edition of
the International Economic Forum,
which was held in Saint Petersburg in
May 2018, Emmanuel Macron, the
President of France, called on French
companies to invest more in Russia,
where France could do better, espe-
cially in the agri-food and digital
technology sectors.
Generally speaking, I think that the
sectors that offer major outlets for
French companies in Russia are
those of goods and equipment in
agri-food and in the automobile
sector.
There is considerable investment in
these sectors in Russia today.
We can see major French successes
in retailing, with Auchan for example,
and also Decathlon, Leroy Merlin and
others.
The automobile sector has also
invested a great deal, especially the
Renault group. Total recently signed
with Novatek to take a 10% stake in a
giant gas project in the Russian
Arctic.
The dynamism of Franco-Russian bilateral relations was illustrated during the
22
nd
edition of the International Economic Forum that took place in Saint Petersburg
at the end of May 2018, in the presence of Emmanuel Macron, the President of
France, who was accompanied by a delegation of French companies.
Philippe BRUNEL,
Head of the Regional Economic Service & Minister-Counsellor for Economic and
Financial Affairs at the French Embassy in Russia
©DR
‘French companies have a
certain interest in investing in Russia’
©Dusanpetkovic1 - AdobeStock
