Munich- Russian President Dmitry Medvedev and German Chancellor Angela Merkel agreed on joint plans to tackle the global economic crisis at bilateral talks near Munich on Thursday. Merkel expressed her support for a takeover bid for GM's European subsidiary Opel, led by Canadian car parts manufacturer Magna and financed in part by Russian state-owned Sherbank.
The leaders strongly condemned Wednesday's murder of rights activist Natalya Estemirova, which Medvedev described as a "very sad event." Merkel said she had been a "brave woman."
At the baroque Schleissheim Palace north of Munich, the leaders expressed unity on foreign policy hotspots including Iran and North Korea, and pledged closer cooperation on fighting crime and terrorism.
Russia and Germany agreed to work closely to combat the global economic crisis and establish joint business deals, Medvedev said.
"The crisis is not over," the president said, adding that the only way to overcome it was by creating a closer framework for cooperation.
In this vein, the chancellor said Magna's Russian-backed Opel bid was an "excellent starting point," but stressed that numerous issues still needed to be resolved.
Ministers present at the talks agreed a deal for Siemens to deliver trains to Russia, while Frankfurt Airport's operator Fraport is to participate in the expansion of St. Petersburg airport.
The German federal development bank KfW pledged 500 million euros (700 million dollars) to safeguard German exports to Russia during the financial crisis.
Both leaders expressed their dismay at the murder of Estemirova, which Merkel called "an unacceptable event."
Medvedev promised to thoroughly investigate the crime, which he said should not go unpunished.
"In contrast to earlier incidences, it is clear in this case: the murder was connected to her activism," the Russian president said.
Medvedev lauded the 50-year-old of mixed Russian-Chechnyan parentage for speaking the truth.
"She at times relentlessly uncovered processes occurring in the country. This is the value of human rights activists, even if they are uncomfortable for the state powers," the Russian president said.
Medvedev dismissed accusations that the Chechen government was behind the killing, saying these were "primitive" and "untenable."
In a broader forum including Russian and German government ministers, joint structures were agreed to fight crime and terrorism, and the foundation of a joint energy agency was sealed.
Both leaders sought to diffuse conflict over the Nabucco gas pipeline agreement signed earlier this week, which is to provide energy to Europe bypassing Russia.
The chancellor focused instead on the Nord Stream pipeline, which includes Russia. "We consider this project to be strategically important and necessary," Merkel said, adding that the two programmes were complementary.
Medvedev added that the Nord Stream pipeline would strengthen energy security across Europe.
"Everything that is good for Europe is good for us, as we are also Europeans," Medvedev said, although he added that nobody had been able to tell him where the gas supplying Nabucco was to come from.
German Culture Minister Bernd Neumann returned six 18th-century baroque ornaments, illegally taken by a German soldier during World War II.
Medvedev invited Merkel to visit Russia's Black Sea resort city of Sochi in August.
The leaders were due later to participate in the closing session of the so-called Petersburg Dialogue between civil society representatives from both countries.
The day ended with a Bavarian dinner prepared by Munich celebrity chef Alfons Schuhbeck.
