Putin advises caution over Iran

Ms Merkel met Mr Putin just after visiting Washington

Russian President Vladimir Putin has urged careful handling of the Iran nuclear dispute at talks with German Chancellor Angela Merkel in Moscow.

"We need to move very carefully in this area," Mr Putin said, while stressing that Russia's stance on Iran was "very close" to the EU and US positions.

Russia is helping Iran to build a nuclear reactor at Bushehr - a project condemned by the US administration.

The row over Iran dominated Ms Merkel's first official visit to Moscow.

Mr Putin said Iranian officials had not ruled out setting up a joint uranium enrichment venture on Russian territory.

Russia has avoided backing Western calls to refer Iran to the UN Security Council over its nuclear programme.

Both Ms Merkel and US President George W Bush have issued such calls.

Correspondents say Ms Merkel's approach to Russia is cooler than the position adopted by her predecessor Gerhard Schroeder, who was good friends with President Putin.

The BBC's Ray Furlong in Berlin says Ms Merkel is likely to take a clearer stance on human rights issues.

She has criticised new Russian curbs on non-governmental organisations.

Energy boost

Mr Schroeder clinched a controversial gas pipeline deal with Mr Putin.

The pipeline being constructed to link Germany and Russia via the Baltic Sea, bypassing Poland, has drawn bitter criticism from Warsaw.

Speaking in Moscow, Ms Merkel said the aim of the project was to ensure Europe's energy security and was not directed against anyone.

She also expressed her concern about planned Russian legislation to limit the activities of non-governmental organisations and said she would watch such developments closely.

Gas is a key issue in the Berlin-Moscow relationship, with Germany getting 30% of its natural gas from Russia, our correspondent reports.

But after Russia's gas dispute with Ukraine disrupted Europe's supplies, Ms Merkel said the continent must diversify its sources of energy.

Ms Merkel, who grew up in communist East Germany, is a fluent Russian speaker, and that may influence her approach to Russia, our correspondent says.

Ms Merkel some she disagreed with Mr Putin on some issues, such as the continuing conflict in Chechnya and the North Caucasus.