Brussels, 03/01/2007 (Agence Europe) - The main message addressed to Moscow by Angela Merkel in an interview to the Financial Times on Wednesday was that under a German presidency of the Council of the Union during the first half of this year, negotiations with Russia would be fair but firm. Although she described herself as being “optimistic” about the results of the negotiations with Russia on the conclusion of a new partnership agreement before the expiry of the current Partnership and Cooperation Agreement (PCA) in November 2007 (see other article p 4), the German Chancellor was keen to highlight the need for Euro-Russian relations to be based on “reciprocal action”. The stormy relations on energy between the Union and Russia are particularly targeted. In an implicit reference to problems encountered in the Sakhaline II and Shtockman gas and oil extraction projects, where European companies are being denied a possible participation alongside Russian companies (EUROPE 9292 and 9325), Merkel underlined the fact that, if Russia restricts foreign investment in its key companies, it should not be surprised if European companies take similar measures. She explained that she thought that “it is perfectly legitimate for Russia to seek greater access to western European markets” but explained that reciprocity was needed. Ms Merkel concluded that “If obstacles are being erected to protect Russian companies from European investors, nobody should resent it if the Europeans take reciprocal action”. (eh)