Leaders from Russia and the European Union (EU) agreed on Thursday in Sochi to carry on their dialogue on energy relations as they gathered in the Black Sea resort town of Sochi for a summit to discuss expanding ties.

There is "a sensitive perception of energy" in Europe and also in the world that there could be a gap between demand and supply, European Commission President Jose Manuel Barroso told a press conference after talks with Russian President Vladimir Putin.

"So one of the conclusions today is that we have agreed to go on with the energy dialogue between the EU and Russia," Barroso said.

Russia, which is the world's second largest oil exporter and supplies about a quarter of the oil and gas consumed in the EU, has declared energy security the top priority during its presidency of the Group of Eight (G8) leading industrialized nations this year.

The Sochi summit is seen as part of the diplomatic build-up to the G8 summit which Putin will host in his hometown of St. Petersburg in mid-July.

Speaking at the press conference, Putin was quick to cast Russia as a credible energy supplier at a time when rising demand has more than doubled prices.

"Russia has been and will continue to be a reliable partner for our European colleagues," he said.

"We have been and will be extending our possibilities in the energy area. We offer our resources to the international market," Putin said.

Source: Xinhua