Germany and Russia Expanding Energy Ties

Energy projects are likely to be at the center of the July 18-19 talks between German Chancellor Angela Merkel and Russian President Dmitri Medvedev in Hanover, Germany. Prominent items on the agenda will be Gazprom's interest in partnering with German utility companies, the expansion of the Nord Stream natural gas pipeline and methods to circumvent EU unbundling reforms. The deals are a sign of the increasingly close relations between the two powers, and they also represent Germany's willingness to make deals with Russia as Moscow attempts to expand its influence in its neighboring states and Central Europe.