Putin and Merkel hold talks in Moscow

Russian President Vladimir Putin dismissed German criticism of his human rights record on Friday, as Chancellor Angela Merkel began a visit to Moscow with a chill descending on relations between the two big European powers, Reuters reports on Friday.

Both made clear they wanted to avoid any impression of friction that might undermine a business relationship worth more than $80 billion a year in annual trade.

"We want Russia to succeed," Merkel said. "We have our own ideas on how one can succeed. Our ideas don't always coincide, but what matters is that we listen to each other."

The two leaders then headed into private talks in the Kremlin that were likely to be frosty after the Bundestag agreed a resolution last week expressing alarm over the threat to civil society in Russia posed by Putin's return to the presidency.

Putin's spokesman denounced a rise in "anti-Russian rhetoric" in Germany before the talks, but Putin said the size of bilateral trade made a mockery of talk of a chill in relations.

"Some disagreements might take place, yes. We argue, search for compromises. But there is certainly no gloomy atmosphere," the Kremlin leader said.