Russia and the European Union will try to mend frayed relations by discussing a new partnership pact at a summit on Friday, but a trade dispute could sour the atmosphere.
EU leaders flew into the Siberian oil city of Khanty-Mansiysk on Thursday hoping new Russian President Dmitry Medvedev, hosting his first EU-Russia summit, would usher in an era of more cordial relations between Moscow and Brussels.
The start of talks on the pact was held up for 18 months because EU members in Eastern Europe, in dispute with Moscow over energy and trade, vetoed the bloc's negotiating mandate.
With those obstacles now removed, EU leaders including European Commission President Jose Manuel Barroso were planning to formally launch the talks on a pact that is designed to provide a blueprint for long-term relations.
Europe relies on Russia to supply a quarter of its energy needs while the EU is Russia's biggest trading partner.
Medvedev and the EU leaders met at an informal dinner on Thursday night, and a source in the EU delegation said: "It was a general get-to-know-you meeting."
"The (EU) guests showed a considerable interest in the idea of working out a new collective security pact for Europe," said a source in the Russian delegation, referring to Medvedev's proposal for a broader regional security body to replace NATO.
But a new row ignited on Thursday, with Finland saying it was considering retaliation for Russia increasing the duties it levies on timber exports. The tariffs have hurt paper producers in Scandinavia who import their raw materials from Russia.
TENSE AFFAIR
The last EU summit on Russian soil, hosted about a year ago by then President Vladimir Putin, was a tense affair after German Chancellor Angela Merkel chided Russian police for interfering in an opposition protest rally.
