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Bavarian leader urges creation of free-trade zone with Russia

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Bavaria's prime minister Wednesday spoke in favor of creating a free-trade zone with Russia.
MUNICH, October 11 (RIA Novosti) - Bavaria's prime minister Wednesday spoke in favor of creating a free-trade zone with Russia.

Russian President Vladimir Putin arrived in Munich Wednesday on the second day of his working visit to Germany to hold talks with Bavarian Prime Minister Edmund Stoiber on a variety of political and economic issues. He was also scheduled to meet with local business and social representatives.

"I think it is a very interesting idea to set up a free-trade zone between the internal markets of the European Union and Russia," Stoiber said, after talks with Putin.

The prime minister spoke of a proactive dialogue with Putin and Russian businessmen in such sectors as energy, finance and space, and called for comprehensive economic cooperation between Germany and Russia.

President Putin said in turn that Bavaria could become the driving force in cooperation between the two countries, particularly in the high-tech sector.

He said Russia was interested in Bavaria's experience in assisting science and higher education, and in creating special high-tech zones.

The Russian government approved in March a program to create seven techno-parks throughout Russia, which will incorporate high-tech enterprises in such sectors as nano-, bio-, information and other kinds of technology, as well as science research organizations and educational institutions that will provide staff for such enterprises and other related ventures.

"Bavaria is one of Germany's high-tech leaders and could become a driving force in the development of high-tech cooperation with Russia, and it could help us achieve a qualitative breakthrough in this promising sector," Putin said.

On Tuesday, Putin met with German Chancellor Angela Merkel in Dresden and attended the Petersburg Forum, an annual meeting intended to strengthen ties between Russia and Germany.

Vladimir Putin said Tuesday that Russian-German trade stood at $20 billion in the first quarter of 2006. Germany, Russia's largest trade partner in Europe, accounted for 10% of Russia's foreign trade in 2005, compared to 4.4% for the United States.

Russian-German trade may reach a record $40 billion in 2006, the Russian leader said Tuesday.

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