Transcript of the beginning of the meeting:

Vladimir Putin: Mr Prime Minister, ladies and gentlemen, we are pleased to see you here. We haven't had much political contact in recent years. This is the first visit of the Swedish prime minister to Russia in ten years.

That being said, economic ties between our countries have deepened. In 2008 bilateral trade neared $9 billion. However, it has dropped by some 40% during the recession.

Many large Swedish companies do business in Russia, including IKEA, Electrolux, Tetra Pak, Alfa Laval, Scania and Volvo. Swedish companies also have quite a big share in the telecommunications market.

We must do what is necessary to increase the flow of capital between our countries. A total of five agreements have been signed during your visit, which will strengthen the legal foundation of our cooperation. And we thank the Swedish government for its decision on Nord Stream.

This new gas transport system is intended to ensure stable gas deliveries to European consumers in the years ahead. Nord Stream has been recognised as a top-priority infrastructure project in Europe.

Germany, Denmark, France and Britain will receive additional energy via this system. In April, construction will begin on the seabed. The pipeline system will be completed by the end of 2011.

I am aware of the bilateral talks being held by Russian and Swedish experts on cooperation in the energy industry. The Russian government is eager to support all initiatives aimed at deepening our economic and trade ties.

We are pleased to welcome you here!

Fredrik Reinfeldt (as translated from Swedish): Thank you, Mr Prime Minister. It is a pleasure to meet you in person. We actually crossed paths once before at the summit of the Council of Europe in the Finnish city of Lahti.

Today we had the opportunity to continue the constructive dialogue we began with President Medvedev at the summit of the European Council in Stockholm.

We are also pleased that Sweden and Russia signed five agreements today, which cover a wide range of activities. We believe that these agreements are a testament to the good relations between our two countries.

The president and I also discussed expanding contacts with an eye toward developing joint business projects. We also noted that it has been almost ten years since the Swedish prime minister last visited Russia.

Naturally, we have differences of opinion on certain issues, but that is the purpose of these visits and talks - to settle these differences.