By Michelle Fitzpatrick - 27th April 2006
After two days of “intense” talks, Vladimir Putin and Angela Merkel have made progress on energy, but remain divided over actions to sanction Iran.
German Chancellor Angela Merkel told reporters in the Siberian city of Tomsk that talks with Putin had been “very open and intensive”, albeit with differing opinions.
German newspaper Handelsblatt notes that under Merkel, German-Russian ties have become somewhat cooler and more businesslike.
High on the agenda at the summit were European concerns over energy supply, following recent threats from Russia’s gas giant Gazprom and oil pipeline monopolist Transneft to cut European energy supplies and concentrate on Asia instead that have worried Europe.
However, history was made during the two-day visit when Gazprom and German chemicals firm BASF reached an agreement that will see BASF help develop a gas field in Siberia, and in return boost Gazprom’s stake in their gas distribution joint venture.
Speaking at a news conference, Putin hailed the gas deal, saying it was the best example of cooperation.
But the Russian president attacked Europe’s ‘double standards’ towards Moscow, claiming that when European countries “come to us it’s called investment and globalisation, but when we go there it’s called expansion by Russian companies”.
He reminded reporters that “even during the cold war”, the Soviet Union supplied gas to the continent “without fail”.
He added that European countries should understand that Russia is forced to look at other markets.
Putin took the opportunity to thank Tony Blair, the British prime minister, for signalling that he would not intervene to block possible investments by Russian energy companies in Britain.
Merkel sought to ease tensions by acknowledging there had always been a “reliable partnership” with Russia on energy. “And I assume this will be the case in the future,” Der Spiegel quotes her.
On the subject over Iran, however, the two leaders were unable to see eye to eye, with Merkel pushing the role of the UN security role but Putin insisting that the responsibility lies with the IAEA.
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