After talks with German Chancellor Gerhard Schroeder in the city of Hamburg, Putin said Moscow had carefully analyzed Germany’s proposals on its participation in settling the conflict. “We accept these proposals on mediation to settle the conflict,” he said

The seventh session of Russian-German negotiations will proceed at Gottorf Castle near the city of Schleswig today. After their official meeting, the two leaders will visit Schroeder’s residential building in Hanover.

Schroeder is known to enjoy warm relations with Putin, the Sueddeutsche Zeitung daily said, noting the German leader did not make critical remarks on Putin’s activities. The paper doubted the prudence of such a policy.

Germany bought about 40 percent of gas in Russia, but gas supplies guaranteed by only one person cannot be reliable, the paper said. Russia with a market economy and priority of law would be the most reliable source. Three main factors lay behind good relations with Putin - Russia’s size, natural resources and missiles. At the same time, Chechnya, Ukraine and YUKOS were three counter-arguments.