German Chancellor Gerhard Schroeder wound up his one-day working visit to Russia on Thursday, which boosted bilateral economic cooperation and laid foundation for future joint efforts in the field.

The brief visit, the second of its kind this year by the German guest following his April trip to Moscow after Putin's re-election in March, resulted in agreements on several vital joint projects, particularly in the energy sector, and enhanced mutual trust conducive to further bilateral economic cooperation.

FRUITFUL JOINT-VENTURE PROJECTS

Putin and Schroeder announced after their talks that the two countries will jointly launch a gas pipeline project aimed at extracting and increasing the sales of Russian natural gas in Europe.

Russia's Gazprom and Germany's E.ON will build a joint-venture to extract natural gas, construct a gas pipeline through the Baltic Sea, develop an infrastructure to supply Russian gas to Germany and the entire Europe, and launch joint projects for electric power stations on the European market, according to Interfax news agency.

Gazprom, Russia's gas monopoly and the largest gas producer in the world, plans to build the pipeline across the Baltic Sea from Vyborg to Germany and Britain, expecting to increase gas supplies from Russia to Scandinavian countries and ensure reliable shipments to Western Europe as well as northwestern parts of Russia.

Hailing the program between Gazprom and E.ON, a leading company in the German energy field, Putin and Schroeder said in a joint statement that "the development of gas resources in Russia and the expansion of the gas infrastructure are of key significance in covering additional demands on the natural gas market and for the security of Germany's and Europe's gas supply."

Apart from the showcase gas project, Russia's Marta group and German REWE-Zentral reached a plan to create a joint-venture, which will reportedly build up a supermarket chain in Russia with some 500 million US dollars in the next three to five years.

A framework agreement on strategic cooperation and mutual understanding between Russian corporation AFK System and German Siemens was also signed.

STABILITY IN RUSSIA APPEALS INVESTORS

During his talks with Putin, Schroeder praised the economic and political stability in Russia, adding that the achievement was made under the Russian leader's reform efforts.

"Business in Germany has great confidence in the political and economic stability in Russia," said Schroeder, noting that the bilateral business ties are expanding in terms of trade and investment because some reforms backed by Putin have been implemented and others are in the offing.

Germany is Russia's main foreign trading partner, accounting for some 10 percent of Russia's foreign trade and about 20 percent of the foreign investment, Putin noted.

Itar-Tass news agency quoted a presidential source as reporting that trade between Russia and Germany reached 18 billion US dollars last year.

Putin pointed out that economic growth in his country during the first five months of the year ran at an annual rate of 7.3 percent, according to preliminary figures.

"The macroeconomic situation in Russia is the most convincing signal for investments," Putin claimed, in what was seen as a veiled propaganda contradicting to the Yukos case that has aroused international concern over Russia's business environment.

Russia's largest oil exporter Yukos is facing a multi-billion-dollar back taxes bill that could bankrupt the company. The year-long legal campaign against Yukos -- seen by some as a Kremlin-inspired political move against its former chief executive Mikhail Khodorkovsky who opposed Putin -- has greatly shaken Russia's stock market and cast doubts over the country's economic policies.

However, Schroeder confirmed in his speech at the Financial Academy of the Russian government that he sees no reasons to speak about the weakening of investors' confidence in Russia, saying "all of you in Russia can be proud of what you have achieved over the past years."

BROAD PROSPECT FOR FURTHER COOPERATION

Schroeder confirmed that Germany is prepared to develop all-round economic cooperation with Russia, citing sales, energy, car-manufacturing and transportation as some important sectors.

The chancellor promised that it would not be a cooperation dominated by one side, but an equal partnership.

"We are ready to pass on our know-how, unlike, perhaps, others," he addressed the bilateral business conference which Putin also attended.

Putin expressed his optimism that Russian-German business ties will enter a qualitative new phase boosted by the agreements reached Thursday by the two sides.

He also pledged that the two nations will continue cooperating on the world arena and within international organizations.

Schroeder pointed out that the Russian-German cooperation and friendship is based on mutual trust and the same views on international politics.

Russia and Germany have nurtured a close relationship particularly last year when Putin, Schroeder and French President Jacques Chirac jointly opposed the US-led war on Iraq.

The two leaders confirmed that their Thursday talks would lay the groundwork for consultations between the two governments scheduled for September in Hamburg, Germany.

Source: Xinhua