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Germany, Russia leaders meet :

Talks on gas supplies, financial crisis

GERMANY: German Chancellor Angela Merkel Thursday hosts Russia’s President Dmitry Medvedev for talks dominated by efforts to avoid a new spat over gas supplies to Europe and the global financial crisis.

The two leaders will hold private talks at a picturesque castle near the southern city of Munich before being joined by key members of both governments, including the ministers for the interior, environment and economy, Berlin said.

“The talks will encompass the most important foreign policy questions, such as Iran, North Korea’s nuclear programme, the Middle East peace process, as well as economic topics, such as the financial crisis and the read-out from the G8 meeting,” Merkel’s spokesman, Ulrich Wilhelm, said on Monday.

“They will discuss a wide range of issues, including on security, gas and economic issues,” added a Kremlin official on condition of anonymity.

In addition, the two governments are poised to ink a raft of economic partnership deals, including a 500-million-dollar (357-million-euro) credit agreement, Medvedev’s foreign policy aide Sergei Prikhodko said on Wednesday.

Among the documents to be signed or adopted will be a joint declaration on energy cooperation and an agreement between Russian Railways and Siemens to establish a joint venture to produce locomotives. Nevertheless, with Germany easily Europe’s biggest customer for Russian gas, the topic of supplies will likely top the agenda, analysts said, with Merkel seeking assurances that the gas crisis in January does not reoccur. Russian supplies to much of Europe were cut off as part of a payment dispute between Moscow and Ukraine, which had a brutal effect on Germany during a bitterly cold winter.

Timofei Bordachev, director of the Centre for Comprehensive European and International Studies in Moscow, said the issue of shoring up Ukraine as a transit country for Russian gas would certainly feature in the talks.

“Russia and Germany understand each other here, both want to reinforce Ukraine as a reliable transit country for gas deliveries to Europe,” he told AFP.

Alexander Rahr, a Russia expert with the German Council on Foreign Relations, said: “We expect new problems coming up, so we will definitely see gas coming up as an issue.” Munich, Thursday, AFP

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