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The discussions focused on large bilateral projects envisaging the conversion of Russian defence plants. Russia’s debt to Germany and prospects of investment cooperation were also high on the agenda. Other issues raised included interaction in defence, law enforcement and foreign policy.

Mr Putin and Mr Schroeder praised the activities of the working group engaged in the problem of Russia’s debt to Germany and its efforts towards finding a mutually acceptable solution.

The leaders also extended by one more year the mandate of a working group for strategic issues of Russian-German trade and economic cooperation.

The talks culminated in the signing of two accords, including an inter-governmental agreement on cooperation in outer space and a joint communique to pursue a training programme for Russian corporate executives.

After the signing ceremony, Mr Putin and Mr Schroeder spoke to reporters at a joint news conference.