German and Russian companies signed major natural gas and rail equipment deals Monday in the presence of both countries' leaders, a sign of growing economic links between their nations. Chancellor Gerhard Schroeder and President Vladimir Putin looked on as German conglomerate BASF AG and Russian energy company Gazprom, the world's largest natural gas producer, signed a memorandum of understanding to expand cooperation in the production, transportation and sale of gas. "It's not just about a supplier relationship," Schroeder said. "It's the first time that a German company is involved in production in Russia." In a second deal, German engineering conglomerate Siemens AG and Russian rail operator OAO Russian Railways signed a ¤1.5 billion (US$1.94 billion) contract for building high-speed and intercity trains in Russia. Both agreements were signed at the Hanover Trade Fair, focused this year on Russian companies.
