Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon, esteemed minister-president, friends and colleagues. I am very happy to welcome you in Russia.

German-Russian relations are developing rather successfully. Trade in 2010 soared by over 30% and reached almost $52 billion. Bavarian companies have made a substantial contribution to this overall positive balance. It is even difficult to list all the leading companies, including Siemens, represented here by heads of companies from Bavaria.

This time, you have come here in order to strengthen relations with Moscow. However, Bavaria cooperates actively with different Russian regions, including St Petersburg, the Moscow Region, Lipetsk and many others. In all, one can list some 10-12 regions.

We are very happy to see you. And I would like to express satisfaction with the fact that that your visit has been very successful.

Horst Seehofer (Via interpreter): Mr Prime Minister, I would like to express my most sincere gratitude for this opportunity to see you. We are extremely happy with this opportunity. I believe that Germany and Russia maintain excellent relations. And, in my opinion, Bavaria makes a substantial contribution to these relations.

We have just discussed in depth bilateral economic relations. At the same time, we maintain very deep personal relations and contacts. Such relations are truly excellent. I'd like to take this opportunity to convey greetings and best regards from Federal Chancellor Angela Merkel and Mr Edmund Stoiber, the former minister-president of Bavaria.

We have signed a new agreement on expanding future cooperation with Moscow and the mayor of Moscow. We have also conducted productive and very, very good negotiations with ministers, members of the Russian government. And I would like to thank you very much for the fact that bilateral relations are developing in such an excellent manner. In the past two days, we have reached agreement on several aspects of strengthening bilateral cooperation. Allow me to once again thank the ministers, members of the Russian government, for the agreements reached.

A high-ranking economic delegation has arrived with us. Its head, Siemens CEO Peter Loescher, is present here. The concern that he heads has been operating successfully in Russia for the past 150 years. And I'm confident that this will continue to be the case for another 150 years.

Frank-Peter Arndt, chairman of the board of BMW, has also arrived with our delegation. I would like to add that Audi's headquarters are located in my home city Ingolstadt. Consequently, I have to divide my sympathies.

Vladimir Putin: I drive an Audi one week, and then I drive a BMW for another. But it's a privilege to drive such good cars.

Horst Seehoffer: Martin Zeil, sitting to my right, is Bavaria's Minister of Economic Affairs, Infrastructure, Transport and Technology. This is very important, given the current situation in Germany.

Vladimir Putin: I'm asking you to send my best wishes to Federal Chancellor Angela Merkel, and to Mr Stoiber, the former minister-president of Bavaria. As you know, I still feel indebted to them when I think about the reception my colleagues and I received when visiting Bavaria. I'd like to offer an appropriate response.

Of course, the most important thing is that Bavarian companies are deeply involved in the Russian economy and, what matters even more, in its manufacturing sector.