French, Russian, German leaders discuss Iran

COMPIEGNE, France (AFP) - Iran's nuclear ambitions and the need to secure Russian energy supplies to the EU were expected to dominate a summit in an elegant chateau north of Paris between the leaders of France, Russia and Germany.

French President Jacques Chirac hosted his Russian counterpart Vladimir Putin and German Chancellor Angela Merkel Saturday in the 18th century property for another of what has become a frequent troika gathering.

Conscious that the three-way summit may be his last, Chirac -- who at 73 is not expected to stand for a third mandate in elections next April -- was keen to set a comfortable and informal tone with the other two.

Before heading to the chateau, he laid on a dinner in Paris late Friday for Putin and pinned France's highest award -- the Grand Cross of the Legion of Honour -- on the Russian president in recognition of his contribution to their countries' friendship.

Merkel, who arrived in Compiegne in a white jacket, was warmly greeted by Chirac before all three retired to the halls of the chateau, which is decorated in Napoleon's imperial style.

Chirac aides said the aim of the meeting was not to make decisions but to exchange views on subjects of mutual concern.

Among those, Iran's nuclear programme was to loom large.

France and Germany have, along with Britain, been leading negotiations with Iran to have it curtail its nuclear development in return for a package of cooperation and trade deals.

Those talks have hit a rocky stage, with Iran stubbornly refusing to give ground, leading to increased attention on the subject from the UN Security Council.

Chirac, hoping to give the talks new impetus, has put France in the same camp as fellow Security Council permanent members Russia and China by calling for a threat of UN sanctions to be suspended while further negotiations take place.

That has forced the United States, which regards Iran as an arch-foe in search of nuclear weapons, to reluctantly back away from its push to sanctions.

The European Union's energy needs, which are in significant part supplied by Russia's gas reserves, were also to be on the table.

French Prime Minister Dominique de Villepin, on a visit to Berlin Friday, proposed an energy summit next year and the creation of an office for a new EU special representative for energy issues.

As well as Russia, the suggested forum would include oil producing nations Algeria and Norway as well as Caspian Sea states Kazakhstan and Azerbaijan.

The EU, the world's second-largest energy market, is highly dependent on Moscow, importing around 30 percent of its natural gas needs from Russia.

It is especially keen to avoid a repeat of January's gas crisis, when Russia's Gazprom switched off its gas taps to Ukraine amid a price war, hitting some supplies in western Europe.

More broadly, the talks come amid an apparent drive by Moscow to assert control over the country's vast energy reserves and muscle out foreign energy majors in favour of state-backed Russian ones.

Russia is notably threatening to revoke a licence for French group Total to develop the Kharyaga oil field, accusing it of excessive delays -- one of a string of major international licences that face being cancelled.

But Putin late Friday claimed those reports were "strongly exaggerated".