Events
External Economic Activity / Cooperation between Krasnodar Region and foreign states
Cooperation between Krasnodar Region and the French Republic
(reference information)
1 Stages in establishing relations
Since 2003 France has been developing its economic contacts with Krasnodar Region. In the opinion of French experts, Krasnodar Region is one of the most stable regions in Russia.
In April 2003 Jean de Boan, President of the Demeter Club, and Jean-Jacques Hervé, Advisor on Agricultural Questions at the French Embassy in the Russian Federation, visited Krasnodar Region with the aim of discussing questions of cooperation in the field of agriculture, future development of agro-industrial complex of the Region, to visite agricultural businesses, and to make the acquaintance of heads of the organs of power in the Region on questions of agriculture.
President of the Castel Group, Pierre Castel, Advisor to the President, JP Lanfranchi, Director General of the Castel Frères company, A Castel, and Manager of Interargus company V Govorov, visited Krasnodar Region in June 2003 to learn about Krasnodar Region and to carry out negotiations on realising the MVK-Soyuz project.
On 24 September 2003 a delegation of senators from the French Republic led by the Chairman of the Committee for Economic Questions Jerome Larché travelled to Krasnodar Region on an official visit. During the visit members of the delegation met heads of the Administration of Krasnodar Region and the Executive Assembly of Krasnodar Region, and also visited leading industrial and agricultural businesses to learn about the economy of the region.
2 Exchange of visits by delegations from Krasnodar Region and the French Republic, presentations and congress-exhibition events.
Representatives of political and business circles in France have taken part many times in events carried out as part of the Kuban annual international economic forum, and in many other events in the Region.
In 2004 a presentation of Krasnodar Region was made in the International Trade Centre in Moscow under the aegis of the Ministry for Foreign Affairs of Russia. The Extraordinary and Plenipotentiary Ambassador of the French Republic Jean Cadet took part in the plenary session.
On 16 April 2004 at the residence of the Ambassador of the French Republic, on the initiative of the French side, a meeting took place between the head of the Administration of Krasnodar Region, Alexander Tkachev, and the First Deputy Head of the Administration of Krasnodar Region Aleksandr Remezkov with the Ambassador of the French Republic Jean Cadet, Advisor to the Embassy on questions of agriculture Maurice Rosin and the First Secretary of the Embassy K Bek.
In 2005 a meeting took place in Krasnodar between the Head of the Administration of Krasnodar Region, Alexander Tkachev and Jerome Monod, Advisor to the President of France, and Jean de Boineau, former State Advisor with the Ministry for Higher Education and Science, member of the board of the Fund for Political Innovation.
At the VI International Investment Forum Sochi 2007, held from 20 to 23 September, the large French delegation, which included representatives of the Embassy of the French Republic led by the Ambassador of France in Russia Stanislas de Laboulaye, and representatives of businesses among whom were such companies as Societe Générale, Electricité de France, etc, took an active part.
From 20 to 22 November 2007 a visit to Krasnodar took place by a delegation from France led by the Extraordinary and Plenipotentiary Ambassador of France in Russia, Stanislas de Laboulaye. The aims of the visit were meetings and negotiations with heads of the Administration of Krasnodar Region, as well as participation in the XIV International Agro-Industry Forum Yugagro, in which approximately twenty French businesses took part. During the visit the delegation visited the Sukden sugar factory in the village of Tbilisskaya. At negotiations with the Director of the factory, MV Moskalevii, the question of participation by French investors in the project was discussed. In addition, the delegation visited the Vasyurinskii stock rearing farm in the village of Starokorsunskaya. During negotiations with the Director AI Kutkovii the question of importing cows from France was discussed.
According to the results of meetings and negotiations the following agreements were achieved. In the field of agriculture, development was planned on importing cattle into the Region. In the field of wine making the parties expressed their intention to work together in training professional personnel, and in exchange of delegations of specialists and technologies in viticulture. During preparations for the Olympics participation by French firms is planned in realising Olympic projects. In the sphere of education the possibility of setting up an Alliance Française centre for learning French was examined.
Great interest was shown in information about the opening of French Embassy visa processing centres, which would make it possible to significantly reduce the time for processing of visa applications. Such centres are already in operation in Moscow, St Petersburg and Ekaterinburg. The Administration of Krasnodar Region put forward an initiative to open a similar centre in Krasnodar.
François Fillon, the Prime Minister of the French Republic, visited Sochi and took part in the work of the 13th meeting of the Franco-Russian Inter-Governmental Commission. The meeting took place in Sochi on 19 and 20 September 2008 under the co-Chairmanship of Mr Fillon and his Russian colleague Vladimir Putin, Prime Minister of the Russian Federation.
The French delegation, represented at the highest level, took part in the VII International Investment Forum Sochi 2008. The French delegation included Christine Lagarde, Minister for the Economy, Industry and Employment; Michel Barnier, Minister for Agriculture and Fishing; Valérie Pécress, Minister for Higher Education and Scientific Research; Dominique Bussereau, State Secretary for Transport; Louis Sweitzer, Chairman of the French Committee for hosting the Year of Culture of France in Russia and Russia in France in 2010; Chantal Juoanno, Chairperson of the Agency for Environmental Protection and Energy Efficiency (ADEME).
Mr Fion was also accompanied by Philippe Citerne, Deputy Chairperson of the Movement for French Businessmen (MEDEF) and managers of French businesses.
Each year the delegation of the French Republic takes part in the international agro-industrial forum "YUGAGRO", which is held in autumn in Krasnodar. In 2009 32 French companies represented on the forum the French delegation headed by Mr. Jean de Gliniasti, Ambassador Extraordinary and Plenipotentiary of France in Russia. The total exhibition area of France amounted to 300 sq.m.
Krasnodar Region is a regular exhibitor of international real estate exhibition MIPIM in Cannes. In 2006 the region received the status of the partner of the exhibition organizers. This year the exposition of the region was located on the area of 525 sq m and presented the most promising projects of the Black Sea area - Anapa, Gelendzhik, Novorossiysk, Tuapse, Sochi and Temryuk. A significant part of the exposition is the capital of the region - Krasnodar.
Traditionally, the entrepreneurs of the French Republic take part in the international specialized exhibition of viticulture and wine production, technology, raw materials, equipment "Wine and drinks. Intervitis infrastructure". In 2010 a collective exposition of France of more than 20 companies, organized by the Association for the Development of International Relations between French and foreign companies UBIFRANCE will be presented at the exhibition. This association cooperates with the Mission for Economic Affairs of the French Embassy in Moscow. The focus of the exposition will be on production technology in the field of viticulture and winemaking. This exposition emphasizes once again that France attaches great importance to developing relations with Russia in the field of agriculture and supports the activity of French companies at the Russian market.
In 2009 an important feature of the business program has become a forum of business meetings between the leaders of Russian and French companies "CROSSROAD FRANCE KUBAN 2009".
Forum aims are: to introduce the leaders of Russian wineries iwith technologies for winemaking and viticulture from France; to propose possible solutions to the financing of joint projects in the context of the global economic crisis; to provide legal and administrative advice; to inform about the opportunities of practical traineeship in France.
The delegation of the municipality of Tikhoretsky district participated in the International Building Exhibition "Batimat 2009" in Paris, France.
3 External trade turnover
In 2008 the external trade turnover of Krasnodar Region and France exceeded $379.4 million. This included export operations to a value of $290.6 million, and imports worth $88.8 million. The balance of trade was positive and amounted to $201.8 million.
The basis of exports by Krasnodar Region to France was:
- oil and petroleum products ($287.1 million);
- machine engineering products ($1 million);
- timber and cellulose paper products ($1.2 million);
- ferrous and non-ferrous metals ($711.2 thousand).
Imports to Krasnodar Region included:
- food goods and raw materials for food production ($22.9 million);
- machine engineering products ($7.3 million);
- chemicals ($7.7 million);
- ferrous and non-ferrous metals ($748 thousand).
According to Customs statistics for 2009 the external trade turnover of Krasnodar Region with France was approximately $125.5 million. This included goods exported to France to a value of $58.4 million, and goods imported from France worth $67.1 million. The trade balance was positive and amounted to -$8.7 million.
The main exports from Krasnodar Region to France were:
- timber and cellulose paper products ($731 thousand);
- ferrous and non-ferrous metals ($269 thousand);
- oil and petroleum products ($53.6 million);
- food products and raw materials for food production ($3.4 million);
- chemical products ($359 thousand).
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Basic imports were:
- food products and raw materials for food production ($15.2 million);
- machine engineering products ($12.9 million);
- chemical products ($12 million);
- ferrous and non-ferrous metals ($3.6 million).
The dynamics of external trade turnover for 2004 - 2009 years
($ millions)
|
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
| Turnover | 86,2 | 177,5 | 317,5 | 294,3 | 379,4 | 125,5 |
| Export | 34,2 | 124,7 | 255 | 199,8 | 290,6 | 58,4 |
| Import | 52 | 52,8 | 62,5 | 94,5 | 88,8 | 67,1 |
| Balance | -17,8 | 71,9 | 192,5 | 105,3 | 201,8 | -8,7 |
During the period from 2005 to 2007 was a steady increase of French investments to the regional economy. In 2007 investments amounted to $ 66,9 million. It is in 10 times higher than in 2005. However, in 2008 it was a decline, and in 2009 the volume of French investments in the regional economy declined to 15.5 million dollars.
4 Businesses with French capital in Krasnodar Region. Investment Cooperation.
In Krasnodar Region there are twelve registered commercial organisations with foreign investment from France, among which honoured places are held by Bonduel Kuban and Kuban tinned goods, in banking sector it bank "Societe Generale Vostock, Representative Office of BNP Pariba Bank and Rusfinance Bank.
Château le Grand Vostok is a unique Russian-French project producing wines in Russia according to the classical European quality standards. This production is the leading full-cycle wine making concern in Russia, from growing the grapes to bottling, set up according to the French Chateau model.
The Avrora factory (village Sadovii, Krimskii District) was built according to the project of the French architect Philippe Mazieres. Since 2003 specialists from France have been recruited. Wine materials are purchased.
The Yuzhnaya, Kuban-Vino and Fanagoriya companies are recruiting French enologist consultants Marie Barbe, Bekar-Heber, Dufay Julien.
The Garus company with the economic mission of France in Russia is realising projects to reconstruct wine making establishments in the Region. The company is also the largest supplier of supplementary materials for wine production: ferments, yeasts, fining agents, filtering and stabilising materials produced by Laffort Oenologie. In the production of wine materials French produced Laffort Oenologies yeasts are widely used, to create the champagne Premier Cuvé. The Garus company is realising a joint project to set up a Pellenc company service centre, the world leader in production of equipment for vine growing.
In the Region's businesses (Fanagoriya, Miskhako, and the VI Lenin wine makers) equipment from the Vaslin Bucher firm has been installed. Abrau-Dyurso carries out bottling and labelling on equipment from the French Parier, Valentine, and Remi firms.
Fanagoriya, Avrora, Vinogradniki Gai-Kodzora, Svezda Semigorya all have long term relations with French producers of seedlings Jean-Guy et Bruno Arrivé, Mercier, and Philippe Dayde.
In January 2007 in Berlin the Head of the Administration of Krasnodar Region Alexander Tkachev signed an agreement with the French Lafarge company on construction of a cement factory with a capacity of 1.8 million tons of cement a year using raw materials from sources in Krimskii District. At the current time exploration work is being carried out. The planned finish date for the project is 2012. The total cost of the project is 13280 million rubles, and it is planned to create 320 jobs. At 1 January 2009 671.7 million rubles had been spent.
In April 2007 the Administration of Krasnodar Region and the French company Alma Group signed an investment agreement on planting an apple orchard in Abinskii District. During this project investment into the Russian agricultural industry should reach €66 million. Alma Group has taken out a 49 year lease on a plot of 1300 hectares, and started building an agro-complex which will include an enormous orchard and a factory for processing apples and producing wine. The first harvest is planned for 2010, and by 2012 production will reach 50000 tons per year.
The Gorimpex group of companies has a range of contracts at the realisation stage in the Region: work on equipping the Winter Olympic Games 2014 host city - the Gornaya Karusel sporting and tourist complex (project planning, construction, equipment supply), Roza Khutor (project planning, construction), and Laura (construction) in Krasnaya Polyana (Sochi).
In the field of architecture and town planning our region cooperates with the French company «Aereco». It is signed an agreement on cooperation in the implementation of energy saving ventilation technology in order to upgrade the existing small hotels and bring them into accordance with modern requirements. The company has developed options for the ventilation conditions of Krasnodar Region.
Also cooperating in the field of tourism in Krasnodar Region are the Touck de Booke international commercial agency (realisation of projects to develop tourist complexes and theme parks) and the Deloitte/BDO company (services in audit, consulting, corporate finance, risk management and tax and legal consultation).
In the framework of the International Investment Forum "Sochi-2008" French company Saint Gobain Oberland signed on a number of investment agreements, including the agreement of intentions in the project realization of construction of glass-container plant in the area of Bruhovetsky District.
In April 2009 it was opened a French tourist information center in Krasnaya Polyana. Tourist Information Centre in Krasnaya Polyana is just the beginning of many actions planned in the framework of the cooperation agreements signed in 2007 between the French ski resort of Lezush and the Russian station of Krasnaya Polyana. It is a successful example of cooperation between the local authorities of France and Russia.
Centre will host Russian and foreign tourists, provide information about the ski station, push it in the Sochi region, in Russia and abroad, as well as coordinate the work of experts in the field of tourism from Krasnaya Polyana.
Simultaneously, it was opened the House of Lezush, which represents at the Russian market the French tourist district Chamonix valley and Russian ski resort Krasnaya Polyana.
5 Humanitarian cooperation
With the cooperation of the Embassy of the French Republic in Russia charitable assistance is regularly provided to the Regional Clinical Hospital No4, the Thoracic Surgery Centre, in Krasnodar and other organisations in the social sphere.
In 2003 Krasnodar was visited by a delegation of medics from France with the intention of learning in detail about the work of the leading specialists in the thoracic surgery centre. Professor of the Strasbourg University Gilbert Massard has visited Krasnodar eight times to develop scientific and practical cooperation and to provide material assistance. With his aid two anaesthesia ventilation apparatuses have been delivered to the thoracic surgery centre from Luxembourg. The Ambassador of Luxembourg in Russia, K Weiss, and the Advisor for social questions of the Embassy of France, J Cherkachukin, have travelled to Krasnodar with Gilbert Massard.
The Kuban State University has many times welcomed as guests representatives of the French educational sphere: professors, teachers, scientific figures. Having won the Tempus Tacis grant for research in the field of education, the Kuban State University plans active cooperation with the University of Nice (France) in addition to its cooperation with the University of Genoa (Italy) and the Moscow People's Friendship University (Moscow).
Every year a week of French cinema takes place in Krasnodar.
In 2007 official delegations from the towns of Grenoble and Les Houches visited Sochi.
The towns of Sochi, Gelendzhik and Tuapse in Krasnodar Region are twin towns of the French towns Menton, Angoulême and Agen. As part of this cooperation seminars and training sessions are held, the Culture Dialogue student exchange programme is being carried out by the twin towns of Sochi, and a programme by the twin towns Menton (France) and Sochi for exchange of experience and genetic resources and joint research into cultivation of citrus fruits.
Inter-university cooperation in the field of tourism is developing between Sochi (the village of Krasnaya Polyana) and the French resort town Les Houches. Three students from the Institute of Tourism in Sochi completed three-month placements in the Tourism Office of Les Houches (from 15 January to 15 April 2008). In as much as partnership between Les Houches and Krasnaya Polyana is based on cooperation in the field of tourism, the inter-university cooperation mentioned will continue to develop in this field.
In 2007 Gelendzhik celebrated the thirtieth anniversary of establishing twin town links with the French town Angoulême. During the celebrations an official delegation from the twin town visited Gelendzhik, and a group of performers from the Eldorado Children's Spa Centre and the school of arts in Gelendzhik visited Angoulême in their turn.
A group of businessmen from Gelendzhik visited the international exhibition for the hotel and restaurant business in Paris. Doctors have completed placements in the city hospital in Angoulême, and at the same time chefs from Gelendzhik took part in the Gastronomada international competition.
In October and November 2008 paediatricians from the children's hospital and maternity home in Gelendzhik underwent placements in health care institutions in Angoulême to learn about the French health care system.
In April and May 2008 a children's football team from Tuapse visited Agen. From among 16 youth teams from England, Germany, France and Spain the Tuapse team took third place.
2010 is declared the Year of the Russian Federation in the Republic of France and the Year of the French Republic in the Russian Federation.
