German Chancellor meets Putin on energy supply

German Chancellor Angela Merkel met Russian President Vladimir Putin on Tuesday for talks expected to be dominated by energy security issues.

In earlier meetings with Merkel and French President Jacques Chirac, Putin had sought to reassure France and Germany about the security of Europe's energy supplies.

Concerns were raised at the beginning of the year when Russia temporarily cut supplies to some European countries during a row with Ukraine over prices.

Russia's gas fields, which supply the EU with about 30 percent of its natural gas, have always been on the top of the agenda during talks between Merkel and Putin. Merkel has met Putin five times this year.

Germany is a major importer of Russian natural gas and crude oil and its demand is set to rise following completion of a new Baltic Sea gas pipeline direct from Russia to Germany.

On the eve of the Putin-Merkel talks in the eastern German city of Dresden, Russian state gas monopoly Gazprom announced that the "priority" for supplies from Shtokman, the world's largest gas field, would be Europe and not the U.S. market as planned earlier.

Russian newspapers called the offer an "unexpected gift" for Merkel.

The Kommersant daily said Putin will propose "to make Germany Russia's principal energy partner in Europe" and will confirm " that Russia guarantees extra deliveries of gas to Germany."

The talks in Dresen, where Putin was based during his time in the Russian secret service, come as Germany prepares to take over the presidency of the G8 group of industrialized nations.

Germany is Moscow's main trading partner in the EU and is expected to have a leading role in shaping western policy towards Russia during its presidency of the G8, analysts say.

Source: Xinhua