German Chancellor Angela Merkel concluded the 13th German-Russian government consultations on Tuesday in the city of Hanover saying that the number of accords signed is proof of the close relations between the two countries.

"The German economy is a natural partner for Russia," Merkel said after talks with Russian President Dmitry Medvedev.

Ahead of the two-hour government talks, the leaders laid wreaths at the Maschsee memorial cemetery to honor a group of forced laborers murdered by the Nazis in Hanover in 1945. They also attended the closing session of the Petersburg Dialogue, an annual meeting between civil society representatives from both countries.

Deepening the already extensive Russian-German economic partnership was only one of many topics on the agenda at bilateral government consultations.

Honoring the dead

Crucial partners

Merkel also announced that it would be easier in future for Russians to travel to Germany. Russia has long demanded a relaxation of the visa requirements to visit Germany, arguing that they are a barrier to business. The chancellor said easing restrictions was now possible, since the introduction of a database to keep track of potential criminals entering the country.

Germany's economic relationship with Russia has raised concern among some observers that Berlin would pay less attention to human rights abuses in Russia -- an issue that was demonstrated by the recent row over the Quadriga prize.

Medvedev on Tuesday slammed the decision to cancel the award ceremony for the private German democracy prize for Prime Minister Vladimir Putin, as a sign of "cowardice". The announcement of the award had sparked a wave of protest in Berlin and beyond over Putin's disputed record on human rights, media freedom and the Chechnya conflict.

"When you have already taken a decision to award a prize, it is taken and reversing that shows cowardice and inconsistency," he told reporters after a joint cabinet meeting with Chancellor Merkel.

President Medvedev also told reporters he believes compromise between Libyan rebels and the government is still possible.

"We must continue the search for opportunities for a peaceful solution. ... We will continue the search for a compromise. In my view it is achievable," Medvedev said.

Honest discussion

Ahead of the meeting with Medvedev, Merkel said the two sides would discuss their political differences frankly while they sought for common economic interests.

"In a democracy you tend to talk about the things that are not working rather than those that are," the chancellor said. "It is better to have a row than to sweep things under the rug."

Medvedev agreed that it was "better to fight than to remain silent." The Russian president also said he agreed that political reform was important for Russia's economic future.

"We agree that democracy, human rights and the rule of law are necessary requirements for lasting and sustainable modernization," Medvedev told reporters.

Author: Dagmar Breitenbach, (dpa, AFP, Reuters, )

Editor: Susan Houlton