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Russia and the European Union(EU) agreed on Thursday to carry on their dialogue on energy to tackle energy security and signed an agreement that eases visa rules for travel between the two sides.

After three hours of discussion at a Russia-EU summit in the Black Sea resort of Sochi, they appeared still divided over the central issue of energy, with talk of "a sensitive perception of energy" in Europe and Russian demand for reciprocal moves for allowing European companies greater access to Russia's energy sector.

Russia, the world's second largest oil exporter and a supplier of about a quarter of the oil and gas consumed in the EU, has declared energy security the top priority during its presidency of the Group of Eight (G8) leading industrialized nations this year.

The Sochi meeting was seen as part of the diplomatic build-up to the G8 summit which Russian President Vladimir Putin will host in his hometown of St. Petersburg in mid-July.

Speaking at a press conference after EU leaders' talks with Putin, European Commission President Jose Manuel Barroso said there is "a sensitive perception of energy" in Europe and also in the world that there could be a gap between demand and supply.

"So one of the conclusions today is that we have agreed to go on with the energy dialogue between the EU and Russia," Barroso said.

But Putin was quick to cast Russia as a credible energy supplier at a time when rising demand has more than doubled prices.

"Russia has been and will continue to be a reliable partner for our European colleagues," he said.

"We have been and will be extending our possibilities in the energy area. We offer our resources to the international market," Putin said.

Russia signed a deal with Germany last year to build a major gas pipeline to northern Europe on the Baltic seabed.

The construction of the pipeline and measures to strengthen energy security on the continent are "aimed at improving the quality of life for Europeans," Putin said.

Visa deal

In Sochi, Russian and EU leaders signed an agreement easing visa rules and an accord on readmitting those who enter Russia or the EU illegally or overstay the limits of their visas.

The visa agreement would facilitate the issuing of short-stay visas for some Russian and EU citizens, including students, civil servants, culture workers and journalists.

The visa deal would "bring a new strong impetus to business initiatives, cultural and scientific links, as well as student exchanges," Putin said at the start of the talks.

The agreements are expected to come into force by the end of this year.

The leaders also discussed the Iranian nuclear program, the Middle East peace process and the situation on the Balkans.

Austrian Chancellor Wolfgang Schussel, whose country currently holds the rotating EU presidency, said in Sochi that both the EU and Russia stand for a diplomatic solution to the dispute over Iran's nuclear program.

"We share the same objective: a diplomatic and peaceful solution to the Iranian nuclear problem," he said.

Putin echoed Schussel's view and said the discussion showed Russia and the EU shared same or similar positions on many European and global issues, which provides a basis for effective cooperation in strengthening security in Europe and in the world as a whole.

(Xinhua News Agency May 26, 2006)