"Judging by all appearances, our cooperation could be even more large-scale, as a result of which Germany could turn from a simple consumer of Russian gas and oil to a large center for the European distribution of these products," Vladimir Putin said at a press conference after talks with Chancellor Angela Merkel in Dresden.

Putin said the two countries also actively cooperate in transportation, aircraft construction and the automotive industry.

The Russian leader said supplies from the Shtokman gas field in the Barents Sea will make Germany a big European center for natural gas.

"Reorientation of such resources [of gas from the Shtokman field] to Europe, and namely to Germany, means Germany will obtain some 50-55 billion cubic meters of gas annually," Putin said, adding that presently Russia supplies 40 billion cubic meters of gas to the country.

The natural gas reserves of the Shtokman gas and condensate field are about 3.2 trillion cubic meters.

Russian energy giant Gazprom made a surprise announcement Monday that it will develop the vast Shtokman gas field on its own, and will pump most of the deposit's gas to Europe, via Nord Stream.

Germany accounts for 10% of Russia's foreign trade. In 2005, trade between the countries reached $32.9 billion, and German investment in the Russian economy hit $10.2 billion.

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