Transcript of the beginning of the meeting: 

Vladimir Putin: Good afternoon, friends, colleagues. Our meetings have become a tradition - over the past few years we have been meeting in this format - a bit smaller or larger group - nearly every year. These meetings are usually attended by the top executives of the leading German companies. I would like to thank you for the attention you have been paying to cooperation with Russia.

Germany is Russia's leading trade and economic partner. Last year, Russia-Germany trade exceeded $60 billion. This year it will be considerably smaller because of the crisis.

However, I was pleased and even surprised to learn that in January through April German investment in the Russian economy grew 36%. It is proof that our relations have been growing despite problems in the global economy and our countries' economies. Moreover, import and export between Russia and Germany is balanced, and our relations are sufficiently diversified.

This is true of all spheres of production, including agriculture, construction, automobile manufacturing, and high technologies.

I would like to say that we not only carry on projects in all of these sectors, but also have large promising projects in mind. What practical results can we expect from this work? In practice, our joint efforts at this difficult time are helping us to preserve and even to create jobs both in Germany and in Russia.

Yesterday I attended the inauguration of a new plant in Russia, the Volkswagen car assembly plant. But we are also working hard with other large German companies, and very many of them are considering or implementing large joint projects.

You know this as well as I do, because you are implementing these projects. For our part - I am referring to the Russian Government, myself and my colleagues - we will do our best for your work here to be successful.

So, welcome. I am happy to see you here.

Dr Klaus Mangold, Chairman of the Eastern Committee of German Industry (as translated): Mr Prime Minister, please allow me, speaking on behalf of my colleagues, to express our heartfelt gratitude for this opportunity, based on the tradition that has developed over the past years, to meet with you again.

I would like to draw your attention to the fact that this is the largest German delegation that ever went abroad. My colleagues here represent the companies with an aggregate turnover of 500 billion euros, which employ 2 million people.

This meeting is evidence of our belief in future relations between Germany and Russia and of our confidence in a positive development of Russia's economy. Our investment in Russia has not decreased even in 2009, a crisis year. All of the 6,000 German companies that have come to Russia continue working here.

I am confident that there are really large projects we can work on in the future, in the infrastructure and energy sector and in enhancing energy efficiency and expanding the network of our pipelines. Yesterday, Nord Stream took a very large step forward.

The German economy views itself as Russia's natural partner in the modernisation of the Russian economy. We would also like to help our technology to be applied in Russia on a larger scale for enhancing the effectiveness and competitiveness of Russian enterprises.

A few months ago we decided to implement a large programme estimated at 500 million euros, which stipulates the financing of Russian enterprises and in particular German supplies for them. We have already started implementing this programme.

I would like to say that our banks are cooperating very well in this sphere. However, we also see the points where our efforts could be applied jointly to improve the general conditions for financing our countries' economies. Mr Prime Minister, we believe that the privatisation programme launched in Russia several weeks ago offers excellent new opportunities for promoting cooperation between Russia and Germany.

We would like to invite you to develop especially close cooperation in this sphere. I believe that it is in the sphere of privatisation that we can create the foundation for advancing our relations to a higher level with regard to economic competitiveness and technology transfers between Russian and German enterprises within joint ventures.

And last but not least, a crucial objective for us is to promote the development of small business in Russia and Germany.

We have come to Moscow for a meeting with you in order to discuss these questions. We believe in strategic partnership between the Russian economy and the German economy. I am confident - just as all of my colleagues - that we have an excellent opportunity to weather the crisis in 2009 and 2010, and the more closely we cooperate the better we can do this. Thank you.

Vladimir Putin: As for the crisis, I can tell you that the fall of Russia's GDP will be considerable, but most likely not as dramatic as we thought at the beginning of the year. But still, the decrease will be considerable.

I would like to focus on several elements you mentioned. Indeed, finance is a crucial sphere of interaction. It is true that Kreditanstalt fur Wiederaufbau and Vnesheconombank are cooperating and, on the whole, creating a safety cushion in this respect. In a word, we are working energetically.

But it sometimes seems that you don't need us - I am referring to the administration. The German Chancellor has recently done much to promote relations between our countries.

The new Government in Germany has not yet been formed, but you are working as if nothing has happened at all on the political scene. In fact, this is a very good sign. It shows that you have a national consensus with regard to the development of bilateral relations.

As for us, the Russian Government and, I am sure, the German Government will do their best to create good conditions for your work.

Dr Klaus Mangold: We are indeed trying to contribute to these efforts.