Russian and EU leaders failed to reach any agreement at a biannual summit at Volzhsky Utyos, Russia, with disputes on democracy and the relocation of a former Soviet statue in Estonia lingering on.

Both sides also touched on energy cooperation, but no progress was made on the issue which has hampered relations in recent years with successive winter price disputes, pipeline shutdowns and Russian consolidation of Central Asian oil and gas reserves.

Disputes linger on

Russian and EU leaders argued Friday over democracy and the relocation of a World War II statue in Estonia at the summit at the Volga resort in southern Russia's Samara region.

Putin was quick to express his dissatisfaction over the EU's position on a range of issues, describing it as "unacceptable."

"We repeat it today at this meeting: we believe it is unacceptable," Putin told a press conference following the discussions.

Putin was hosting the biannual summit with European Commission President Jose Manuel Barroso and German Chancellor Angela Merkel,whose country currently holds the EU presidency.

Estonia angered Russia in late April when it moved a bronze statue of a Soviet World War II soldier from a central square to a cemetery in the Estonian capital Tallinn, sparking riots.

Meanwhile, the Europeans have accused Moscow of eroding democracy with its crackdowns on recent anti-Kremlin protests and curbs on press freedom.

Despite all the rhetoric though, Putin went on to say that "neighbors were not chosen" and Russia will continue to find resolutions for its tense ties with Estonia and other countries.

Looking at tackling hurdles, he said, "A difficult issue is the strengthening of a legal frame work for partnership between Russia and the EU. The EU should resolve its own problems and we have a lot of respect for that."

Barroso admitted there are "difficulties" in EU-Russian relations, but said the two sides "are committed to strengthening our strategic partnership."

Among Barroso's complaints was Russia's ban on the Polish meat imports, describing it as an "important matter" as Poland is a member of the 27-member bloc.

"There's no reason for a ban on Polish meat," Barroso said, adding that if there were any problems with the product it would have been banned in the EU.

The conference, as analysts predicted, failed to trigger talks for a new partnership agreement to replace the current one, which came into effect in 1997 with a 10-year initial duration.

Both sides, however, spared room for further negotiations as a partnership agreement would act as the guideline for bilateral ties in the future.

Putin said Russia is "ready for an open and honest dialogue, without any forbidden subjects, that would allow us to move our relationship forward."

Merkel said the meeting offers a chance for both sides "to decide on specific steps to advance our relations and resolve the outstanding issues." "There are many areas in which we could cooperate," she said.

Energy cooperation

On energy cooperation, Merkel said the two sides agreed to analyze the European demand, adding that "there's willingness to cooperate on both sides and we have a lot of potential."

Despite Merkel's softened rhetoric, the European Union has been accusing Russia of using energy as a tool for political purposes.

Russia inked a landmark deal early this month with Central Asia's major energy producers, Kazakhstan and Turkmenistan, who agreed to export their natural gas via Russia's pipelines around the Caspian Sea.

Analysts, however, regarded it as a blow to Europe's and the United States' drive to diversify energy supply by buying more gas and oil from Central Asia.

In addition to energy, Barroso asked Russia and Germany to beef up cooperation on tackling climate change.

They also discussed Russia's access to the World Trade Organization. Russia is the last major economy outside the international body.

(Xinhua News Agency May 19, 2007)