Transcript of the beginning of the meeting:

Vladimir Putin: President Grybauskaite, I'm pleased to meet you.

I would like to say from the start that we hope that with your new role in this important post we will finally solve the problems that have been preventing Lithuania and Russia from establishing normal relations, all the more so because we have a good historical precedent and deep mutual interests.

Suffice it to say that major Russian companies are already actively working in Lithuania and have invested more than $1.5 billion in the Lithuanian economy. We want to continue this work.

Still, if we had created favourable conditions for development in years past, these investments could have been several times greater. I say this in all honesty, without any exaggeration. Several times greater!

Perhaps the consequences of the economic crisis - which both our countries have had to deal with - perhaps the consequences of the global crisis would not have been as severe if economic ties with a major economic partner like Russia had been properly calibrated in time.

Let me repeat that we are optimistic about our diplomatic and economic ties with your country. We sincerely hope that we will be able to take steps in the right direction and not put these decisions on the back burner.

Dalia Grybauskaite: Good. Many thanks for arranging this visit.

We too are optimistic about our future and the future of the European Union, which we are a part of. And, of course, we are optimistic about our relations with our neighbours.

I have long spoken out in favour of the need for a constructive dialogue with Russia on a political level, at the highest levels. Our economic relations are also important, of course.

Russia is one of our most important export-import partners. And it's very important for us that our economic ties are based on mutual understanding and trust, and that discrimination has no place.

Of course, there are many chores, so to speak, that have been left unfinished by both sides and some sore spots that have kept our relations from moving forward.

I also hope that we can focus on our interests. It's best to focus on the future rather than dwell on the past and to try to move our relationship forward on the basis of mutual respect ...

Around 30% of our imports come from Russia - mainly raw materials, oil and gas. And we send around 13% of our exports to Russia. We would like for this number to be 30%.

Vladimir Putin: But if we look at agriculture, I think that a significant amount of your agricultural products do go to the Russian market.

Dalia Grybauskaite: The numbers aren't bad. They're fairly good.

Vladimir Putin: They're good. We provide an opportunity for you to sell your goods. But there is also plenty to talk about in the energy sector. I'm thinking in particular of the closure of the Ignalina Nuclear Power Plant. We know that there are plans to build a so-called Baltic plant.

We have grounds to believe that natural gas consumption in Lithuania will double following the shutdown of the station. We are prepared to evaluate all of these needs on very favourable terms and to solve these problems in the spirit of partnership.

Dalia Grybauskaite: Well, taking your words at face value, let me say right away that we are very interested in working out an arrangement in which Lithuania pays the same prices as Western Europe. And in particular, we would like to move to spot prices, in other words, exchange trade and gas prices. We will make this a priority in our agenda in future talks and relations.

Russia uses spot prices with other countries outside the Baltic region.

Vladimir Putin: We can discuss this in greater detail. But honestly, I'm not authorised by Gazprom to conduct specific negotiations, particularly with regard to prices. Still, we can always discuss these issues. Thank you.