EU Russia fail to resolve energy differences

The European Union and Russia said this evening that big differences remained over access to energy markets after a two-day summit…

The European Union and Russia said this evening that big differences remained over access to energy markets after a two-day summit seen as setting the stage for the G8 meeting in St Petersburg in July.

European Commission President Jose Manuel Barroso and Russia's President Vladimir Putin put on a public display of friendliness in the Black Sea town of Sochi, but the two leaders appeared to make little tangible progress on major issues.

Mr Putin, who has put energy security at the heart of the G8 agenda, stuck by his position that the Kremlin will only allow Europe greater access to Russia's oil and gas sector if Russian companies are allowed into European markets in exchange.

"If our European partners expect us to let them into the holy of holies of our economy, oil and gas ... then we expect that they will meet us halfway with their own measures," Mr Putin told a news briefing in Sochi.

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But he added: "The main thing is that we have the desire to reach agreement on these questions and we will reach agreement."

Many observers say the Sochi summit is an important dress rehearsal for the July summit of the Group of Eight industrial democracies which Russia is hosting for the first time.

US Vice President Dick Cheney set a tense tone for the summit earlier this month by questioning Russia's democratic credentials and accusing its leaders of using oil and gas as tools of "intimidation and blackmail" against its neighbours.

Mr Putin evaded a question on Mr Cheney's remarks today, saying Russia was merely defending its own interests.

Mr Barroso said the issues had been raised behind closed doors, but did not criticise his host.

"We have no taboos in our discussions," Mr Barroso said. "I can tell you very frankly that I saw in this meeting a true spirit of openness and a trying to understand each others' position."