Russia's Vladimir Putin in France for economic talks

Hugh Schofield
Paris

Vladimir Putin could hold talks with French President Nicolas Sarkozy

Russian Prime Minister Vladimir Putin arrives in France on Thursday for two days of talks, with economic issues expected to dominate.

Mr Putin wants France to invest in Russia's gas pipelines, in spite of EU fears it could swamp the market.

He also hopes French companies will put money into struggling car manufacturer Avtovaz, makers of the Lada.

Mr Putin will dine on Thursday with his French counterpart, Francois Fillon, and may meet President Nicolas Sarkozy.

Enormous reserves

Gas will be at the heart of Mr Putin's talks because Russia wants - and is likely to receive - more French investment in its two pipeline projects.

The pipes, which stretch across the Baltic and Black seas, bring enormous reserves to the European market.

The European Union has long been wary of the projects, which it fears will make Europe overly dependent on Russian gas.

The Baltic gas pipeline brings huge reserves from Russia to Europe

But it appears that "realpolitik" - a recognition of the Russian domination of the market - is prevailing in Paris.

Mr Putin is also looking for help in modernising Avtovaz.

The French carmaker Renault already has a 25% stake in Avtovaz. But they could be reluctant to pump in more funds, given the current state of the world car industry.

A third issue likely to be discussed by the two premiers is the planned sale of a French ship to Russia - a helicopter carrier currently in dock in St Petersburg is being admired by Russian navy procurement officials - which would be the first time Russia has bought armaments from a Nato country.

However it has provoked deep concern among some of Russia's neighbours, including Estonia and Lithuania, who have asked Paris for more detailed information.