GERMAN CHANCELLOR ANGELA MERKEL AND RUSSIAN PRESIDENT VLADIMIR PUTIN OVERSAW A MAJOR GAS DEAL ON THURSDAY, BUT FAILED TO MAKE PROGRESS ON IRAN'S NUCLEAR AMBITIONS ON THE EVE OF KEY U.N. SECURITY COUNCIL DELIBERATIONS, REUTERS REPORTED. PUTIN ALSO USED HIS TALKS WITH MERKEL, IN THE SIBERIAN CITY OF TOMSK, TO RAIL AT RUSSIA'S EUROPEAN PARTNERS FOR SEEKING TO LIMIT MOSCOW'S DOMINANCE OF THEIR OIL AND GAS MARKETS, SAYING IT WAS TIME TO "AGREE ON GENERAL RULES OF BEHAVIOUR". THE HIGHLIGHT OF MERKEL'S TWO-DAY VISIT WAS THE SIGNING OF AN ASSET SWAP DEAL BETWEEN GERMAN CHEMICALS FIRM BASF AND RUSSIA'S GAS GIANT GAZPROM THAT INCLUDES THE RIGHT OF BASF TO HELP DEVELOP THE LARGE YUZHNO-RUSSKOYE GAS FIELD. "THIS IS THE FIRST TIME IN CONTEMPORARY HISTORY THAT RUSSIA HAS ALLOWED A FOREIGN PARTNER INTO GAS PRODUCTION ON A GIGANTIC FIELD, WHICH WILL BE EXPLOITED FOR DECADES," PUTIN DECLARED AT A NEWS CONFERENCE AT WHICH BOTH LEADERS STROVE TO PUT A HIGH GLOSS ON THEIR ENCOUNTER. BUT WITH MERKEL ADMITTING TO "VERY OPEN AND INTENSIVE DISCUSSIONS ... OFTEN WITH DIFFERING OPINIONS", EVEN THIS HAD A BITTER EDGE SINCE GAZPROM SAID IT WAS NOT YET READY TO SIGN A SIMILAR DEAL ON YUZHNO-RUSSKOYE WITH E.ON. THE GERMAN UTILITY HAD BEEN EXPECTED TO BE THE THIRD PARTNER IN THE PROJECT.
