Putin delivers huge gas supply deal to 'key ally' Germany


Vladimir Putin hailed Germany yesterday as Russia's strategic ally in Europe after promising to double the amount of gas pumped to German businesses each year via a new pipeline.
"I am sure that Bavaria will contribute to the development of Russian-German co-operation," the Russian president said after being greeted by a band of Bavarian mountain sharpshooters in traditional feathered hats at the Residenz palace in Munich.
The visit followed Mr Putin's announcement in Dresden late on Tuesday that Russia's state-controlled Gazprom natural gas firm would use gas from the Shtokman field under the Barents Sea to send 55 billion cubic metres a year to Germany, in addition to the 40 billion it already receives.
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"Germany will not only be able to completely cover its gas needs, it will itself become a great distribution centre of gas in Europe," Mr Putin said.
While business in Germany is on the whole embracing closer ties with Russia, concern is increasing over the influence of the Kremlin.
The balance of power is shifting to Russia — and not only regarding its relations with Germany, but through it, with the rest of Europe.
While in the 1990s Moscow's politicians would come to Germany cap-in-hand looking for investment, now Russians with sharp suits and sharper business practices are buying up shares and influence.
Hans Friedrich von Ploetz, a former German ambassador to Moscow, said: "In the past, German companies asked themselves whether it would be wise to invest in Russia. Today the Germans are wondering whether it would be such a good idea to allow the Russians to invest in their businesses."