Germany, Russia sign deals after upset over Putin prize

Jul 19, 2011, 15:59 GMT

Hanover, Germany - Germany and Russia signed a string of deals at government consultations in the north German city of Hanover on Tuesday, but their talks were overshadowed by a row over a canceled award for Russian President Vladimir Putin.

The numerous deals, spanning business interests, cultural exchanges, developing the rule of law and German support for fire-damaged turf moors, were 'proof of the intensity of contacts between ministries,' Merkel said.

The energy industry has been a key focus. Germany's dependence on Russian imports is likely to grow as its nuclear power capability is wound down, but Berlin would also like to see energy prices fall.

'The cheaper Russian gas is offered, the more likely it is to be purchased,' Merkel told reporters, stressing that these were business decisions made by energy corporations.

Merkel said that Germany was a 'natural' business partner for Russia, but added, 'we made clear that, of course, we need legally secure conditions in Russia - this met with agreement.'

Merkel also supported Russia's desire to join the World Trade Organization (WTO), while Medvedev said that trade volume was expected to return to pre-financial crisis levels this year.

Medvedev left open whether he would run again in next year's presidential election, asking for a bit more patience before he made his decision known.

Germany would keep an eye on human rights issues, Merkel said, adding that a 'fair situation' for the media was crucial ahead of the elections.

'The elections must proceed openly,' Medvedev agreed.

Earlier in the day, Merkel said that Germany would ease its visa conditions for Russian workers, in response to a long-standing demand from Moscow.

'I hope we can present something on this next year.' Merkel said. 'We are working hard on this.'

The leaders also discussed the uprisings in the Arab world.

Merkel said it would be good to send 'a signal' to the Syrian regime, to show that the same standards applied to Damascus as they did in Libya.

Russia has so far resisted moves by Germany, which currently heads the United Nations Security Council, for the body to adopt a resolution condemning the Syrian crackdown on pro-democracy protest.

Medvedev criticized the Western allies for their military intervention in Libya, implementing a UN Security Council resolution which Russia abstained from voting on, along with Germany.

'Instead of blocking airspace, an active phase of civil war has been provoked,' Medvedev said, criticizing the NATO-led operation for taking sides in the conflict. Both leaders advocated a political solution to the Libyan crisis.

Ahead of the two-hour government talks, the leaders attended the closing session of the Petersburg Dialogue, a regular meeting between civil society representatives from both countries, which began Sunday.

But despite their show of unity, an earlier controversy flared up over a German prize for which Putin had been selected, honouring his contribution to German-Russian relations.

The little-known Quadriga prize was withdrawn at the weekend, after critics complained that it ignored the premier's poor human rights record.

Medvedev said it was 'cowardly' of the semi-autonomous board to withdraw the award in the face of criticism.

Civil organizations should be free to decide whom to nominate for awards, the president said.

'But, if you make a decision you must stick to that decision,' he added. 'Otherwise it is cowardice and inconsistency.'

Germany and Russia have been holding annual government consultations since 1998. Berlin only holds such consultations with seven other countries, including France and Israel, as well as India and China, which both came on board this year.

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