On Tuesday Russian President Vladimir Putin pledged to double gas exports to Germany in a move designed to ease concerns about energy in the European Union (EU).
Russia would send 50-55 billion cubic meters of natural gas a year to Germany in addition to the current 40 billion said Putin after talks with Chancellor Merkel in the German city of Dresden.
Putin said Russia planned to make Germany a European hub for gas exports from huge reserves in the Barents Sea. Germany "will become a major distributor of gas for Europe," he explained.
Russian natural gas giant OAO Gazprom said on the eve of the Putin-Merkel talks that piping supplies from the vast Shtokman gas field to Europe would take precedence over sending liquefied gas to the United States. Russian newspapers described the offer as an "unexpected gift" for Merkel.
The Kommersant daily said Putin proposed "to make Germany Russia's principal energy partner in Europe" and would confirm "that Russia guarantees extra deliveries of gas to Germany."
Concerns were raised at the beginning of the year when Russia temporarily cut supplies to some European countries during a row with the Ukraine over prices.
Russia's gas fields, which supply the EU with about 30 percent of their needs, have always been top of the agenda in talks between Merkel and Putin. Merkel has met Putin five times this year.
Germany is a major importer of Russian 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.
The talks in Dresden, 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, analysts predict.
(Xinhua News Agency October 11, 2006)
