Putin said the union is Russia's biggest trading partner and increasingly involved in oil and gas development in Russia, the RIA Novosti news agency reported.

He welcomed the EU decision this week to resume discussions on a new treaty with Russia. The talks had been suspended after Russian troops entered Georgia in August.

"Our joint work will improve transparency, and enhance the reliability and stability of the Russian and European economies. We will continue to pursue this policy," he said.

The former president discussed foreign policy during a three-hour public question-and-answer session that was broadcast on radio and television.

Putin acknowledged sales of gas and oil to Europe are important to Russia, which has been hit by the recent decline in oil prices.