After a bilateral meeting in Wiesbaden, western Germany, Russian President Vladimir Putin and German Chancellor Angela Merkel said they were eager to build the planned Nord Stream gas pipeline linking Russia and Germany under the Baltic Sea, a project that has stirred controversy in Europe as it bypasses several countries in Eastern Europe, stripping them of transit fees.

Merkel said the project, struck by the former government, was supported by the current administration as well, saying that she hoped to alleviate concerns in Europe.

"Where there are problems implementing it economically, we can help -- if political talks help," she said. "If investment conditions need clearing up, that must ensue at a company level."

Stretching 750 miles, from Vyborg near St. Petersburg to Greifswald in northeastern Germany, the pipeline is scheduled to go into operation in 2010. It would then tap into the giant Yuzhno-Russkoye field, which has an estimated annual output of 25 billion cubic meters of natural gas.