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'US dominance is over' - Medvedev 'US dominance is over' - Medvedev
(9 minutes later)
Russian President Dmitry Medvedev has said that the era of US global economic dominance is over.Russian President Dmitry Medvedev has said that the era of US global economic dominance is over.
Speaking after talks with German Chancellor Angela Merkel in St Petersburg, Mr Medvedev said the world needed a "more just" financial system.Speaking after talks with German Chancellor Angela Merkel in St Petersburg, Mr Medvedev said the world needed a "more just" financial system.
Mrs Merkel's visit is seen as an effort to ease tensions between Moscow and the West over the war in Georgia. Russia is backing two breakaway regions there.Mrs Merkel's visit is seen as an effort to ease tensions between Moscow and the West over the war in Georgia. Russia is backing two breakaway regions there.
But Georgia's territorial integrity "is non-negotiable," Mrs Merkel insisted.But Georgia's territorial integrity "is non-negotiable," Mrs Merkel insisted.
Mrs Merkel, like other Western leaders, has criticised Moscow's actions in Georgia in August. In the brief war Russian troops pushed well beyond the borders of breakaway South Ossetia and Abkhazia.Mrs Merkel, like other Western leaders, has criticised Moscow's actions in Georgia in August. In the brief war Russian troops pushed well beyond the borders of breakaway South Ossetia and Abkhazia.
Yet Mrs Merkel has called for continuing dialogue with the Kremlin. On Thursday Mrs Merkel called Russia's intervention in Georgia "disproportionate".
The talks come a day after European Union observers began patrolling in Georgia to oversee a withdrawal of Russian forces from "buffer zones" around the breakaway regions.The talks come a day after European Union observers began patrolling in Georgia to oversee a withdrawal of Russian forces from "buffer zones" around the breakaway regions.
Russia has kept troops there since ousting Georgian forces. It has promised to complete its troop pull-out by 10 October, but it plans to keep nearly 8,000 troops in South Ossetia and Abkhazia.Russia has kept troops there since ousting Georgian forces. It has promised to complete its troop pull-out by 10 October, but it plans to keep nearly 8,000 troops in South Ossetia and Abkhazia.
Booming trade Gas deal
In St Petersburg, Mrs Merkel and Mr Medvedev were also expected to discuss how to boost growing bilateral trade. In St Petersburg, Mrs Merkel and Mr Medvedev signed a long-awaited energy deal giving the German firm E.On a stake in a Russian gas field that will supply the Nord Stream undersea pipeline the two countries intend to build.
The Russians want German technology, while the Germans seek access to Russian markets, the BBC's Steve Rosenberg in Berlin says. Germany's European Union neighbour Poland objects to the pipeline, which will deprive it of lucrative transit fees.
Some 40% of the natural gas Germany imports comes from Russia, and the two countries are now building a pipeline under the Baltic Sea to bring Siberian gas to Europe. Some 40% of the natural gas Germany imports comes from Russia.
Many German business leaders believe their future depends on good relations with Russia, our correspondent says.
He says Berlin does not want its good links with Moscow to be broken now by a new stand-off.