Tue, Jan 23, 2007 - Page 6 News List

Merkel, Putin at odds over Russia's energy exportation

AFP , SOCHI, RUSSIA

German Chancellor Angela Merkel and Russian President Vladimir Putin were at odds on Sunday after talks on energy relations amid EU doubts over Moscow's reliability as a supplier.

Merkel stressed the importance of "relations of trust" and called for improved communication on energy between the EU and Russia "in order to avoid tensions, misunderstandings or disappointments."

But Putin defended Russian moves to drastically increase energy prices for neighboring former Soviet countries -- a policy that has led to supply disruptions to Europe through Belarus and Ukraine in the past 12 months.

"Russia is aiming to create common, transparent rules for cooperating with our partners. Our European customers have an interest in this," Putin said, referring to transit through Ukraine and Belarus.

The EU depends on Russia for a quarter of its energy needs. Much of the supply, particularly of natural gas, travels through the neighboring former Soviet republics.

Putin also said, however, that Russia would redouble efforts to build new transport networks to export oil and gas in order to reduce the country's reliance on transit countries.

A Russian embargo on meat imports from Poland -- another issue clouding relations between the EU and Russia -- remained unresolved, despite hopes of a possible breakthrough ahead of the Putin-Merkel meeting.

Poland has vetoed the start of partnership talks between the EU and Russia until the embargo is lifted. Merkel said the meat trade issues "have still not been resolved," while Putin said: "We have to come to an agreement."

Putin also voiced hope for improved ties with the EU.

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