The two leaders found common ground over gas
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Russian President Dmitry Medvedev says he is concerned about hardening attitudes to Russia in Western Europe.
Speaking in Berlin - on his first trip to the West since becoming Russian president last month - he rued a "shrinking of mutual understanding".
Issues such as the US missile defence shield and Nato enlargement eastwards have dogged Russo-European relations.
Still, he and Chancellor Angela Merkel found common ground over a gas pipeline being built between the two countries.
Mrs Merkel described the project of being of strategic importance, while Mr Medvedev called it "a European undertaking of global significance" that would benefit the whole continent.
However, the project under the Baltic Sea has aroused concern in Poland and the Baltic republics, which fear being cut out of the supply route.
Shadow of Putin
Mr Medvedev's visit is being closely watched in the West for any signs of a change in Russia's approach to Europe now that he has replaced Vladimir Putin.
But some of the old issues were revived.
Mrs Merkel called for more openness in Russian society.
And the new Kremlin leader warned the outside world against intervening in the case of jailed Russian tycoon Mikhail Khodorkovsky. He said it was not an international issue.
The BBC's Steve Rosenberg in Berlin says that even if Mr Medvedev did say everything his audience wanted to hear, there would still be those in Europe who would no doubt remain sceptical, convinced that Vladimir Putin - now prime minister - is still calling the shots.
The visit to Germany follows Mr Medvedev's trip to Kazakhstan and China last month. Some analysts said the fact that he went east rather than west for his first trip abroad after being sworn in showed where Russia's foreign policy priorities lay.
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