Mr Prime Minister, ladies and gentlemen,

It is my pleasure to welcome you here, in Sochi.

I would like to stress that the business communities of our countries contribute much to the strengthening of partnership between the Russian Federation and the French Republic. Your joint initiatives and projects bring concrete results giving our interaction extra impetus.

That is why I consider it important and helpful to gather you here ahead of the next meeting of the French-Russian Bilateral Cooperation Commission, learn your point of view on economic cooperation problems and outlook. We are eager to take account of all relevant suggestions the business community might make in planning for the future.

I should emphasise that there has been a strong foundation created to foster our business partnership; an effective cooperative structure has been formed; and that commodity turnover is on the rise. Measured at the end of the second half of 2008, the accumulated volume of direct investments from France equalled $1.7 billion. We endorse French investment in the Russian economy.

Our countries actively interact in industry as well as in research and development, for example, in aerospace. This is an important step towards boosting the quality of our business links and diversifying their structure.

You might know that we have studied the prospects for the Kourou Space Centre and have decided to launch the project. As many as 250 Russian specialists work there already. Yesterday we discussed with Mr Prime Minister the opportunities to extend our interaction, namely, by means of using our Soyuz craft. We also spoke about the prospects of joint work on a reusable launch vehicle. Of course, this is all very promising, as is the work in other high-tech areas.

Energy remains one of our priorities. The work with our French partners confirms that Russia is committed to cooperation in this strategic area, whether in hydrocarbons, the energy industry or the peaceful use of nuclear energy.

Russia's dynamic development obviously points to new areas where we could collaborate. We hope for business' fruitful participation in large-scale projects to modernise the transport and energy infrastructure, agriculture, and housing and utilities infrastructure.

As for infrastructure projects, we have been building a system of state and private business partnership, which is new to Russia. As far as I know, this model has proved rather effective in France. We regard this experience as helpful and interesting.

We pay much attention to the development of high-tech production facilities. Both private companies and state corporations, recently founded in Russia, are working in this area. I believe that biotechnologies, composite materials and nanotechnologies are the research areas we could realise interesting and promising joint projects in.

By the way, our high-tech businesses have been penetrating the French market already.

Our companies turn to real players in the global investment market. Unfortunately, France is not yet on the list of the markets Russia's investors develop most actively. But I am convinced that, provided our mutual willingness, we can significantly boost our investment flows. We continue improving our investment, taxation and customs legislation to make it more transparent and complying with international norms.

Regardless of the problems we all are aware of, we haven't abandoned the idea of joining the WTO. We are eager to expand the economic dialogue with the European Union.

Russia has always been open to close international cooperation, which should be based on respect for the partner, understanding mutual interests and profits.

So far Russia and France, our business communities in both countries, have managed to work with these principles in mind. I am sure that, sticking to this approach, we will definitely succeed in realising the boldest and most promising plans.

Thank you for your attention. Mr Prime Minister, please take the floor.

The opening address of French Prime Minister Francois Fillon:

Thank you, Mr Prime Minister. I would like to thank you for the warm welcome. We spent a long evening with you yesterday, which allowed us to frankly exchange opinions on a range of matters, which was beneficial to both of us.

This morning we also considered bilateral economic cooperation issues, namely, French business' capital investments in Russia and vice versa. It is related to the activity of the Franco-Russian Economic, Financial, Industrial and Trade Council (CEFIC). Ms Lagard (Christine Lagard, France's Economic Minister) and Mr Sobyanin have been in charge of this work. Much has been done to prepare this meeting and extend our bilateral links.

Russia is a growing market. You have rightfully emphasised that France hasn't fully taken advantage of it - it accounts for only 3.9% of the market. France is Russia's ninth largest partner; it has a long way to go to reach Germany and Italy. France is only the seventh largest investor in your country.

Of course, there is a foreign trade deficit. But this situation does not reflect French companies' opportunities. That is why we have been putting much effort into improving the situation all year.

Large-scale projects, which were started at the beginning of the 2000s, are taking shape. I mean the cooperation between Sukhoi and Soprano, the work on Superjet 100; Airbus and Aeroflot; Total and Gazprom concerning the Shtokman field. We devoted much time to it yesterday. Today our collaboration has come to a new level: the Societe Generale's acquisition of Rosbank, paid highways, railways, and high-speed rails.

It reveals three major points. First, France is ready to address the challenges of the Russian market's diversification. I think the variety of French business circles here demonstrates it. It is also connected with new regional markets, including those of Krasnodar and Kaluga, where Alco and Carrefour will work. The companies represented here are more than willing to develop long-range cooperation.

I would like to welcome a larger number of Russian investors in France. We have already had an opportunity to consider this issue in Paris. I think we should rebuff the statements that France is a protectionist country. I should say that we are the world's third largest country in terms of imports. France's regulations in this area are one of the most liberal in the world. We have an absolutely transparent legal framework; there is no discrimination between the private and state investors. The only restriction, as you know, regards the 11 defence sectors. Here, you need to get a preliminary permit. But I think that both our countries have provisions of that kind. I suppose, Russia has the same in many sensitive areas.

Finally, as you wished, Mr Prime Minister, we pursue a proactive policy to attract Russian investors to France. We opened our capital investment agency in Moscow, which will start working in the near future. But the best argument to attract foreign investors is, in my view, my Government's unprecedented reforms to increase the French economy's competitiveness.

Mr Prime Minister, Russia faces quite a challenge with its economy; it needs partners to successfully carry out modernisation. These efforts are under way. Every day we can spot progress in this direction.

I would like Russia to similarly confirm its decision to integrate in the world economy, just like you confirmed it to me yesterday. I wish this meeting would give the representatives of France's business circles an opportunity to express their views: their hopes and problems - which is also part of our activity - they have in developing their projects.

Vladimir Putin: Mr Prime Minister has twice mentioned yesterday's conversation. It was really business-related and terse. In the end, however, we played billiards. Mr Prime Minister said, "I am truly bad at this game." Then he sunk a ball and left. That is why we need to be attentive with the French both in politics and business.

Francois Fillon: Mr Prime Minister, it was pure luck.

Vladimir Putin: I think we will develop our business and political relations in this informal friendly style. We have managed to do it so far.