"I am pleased to note that we have worked well in the past years - both with the previous government and with yours," Vladimir Putin told Angela Merkel, adding that trade in the last six years grew 250% to reach over $50 billion.
"Political contacts are regular, relations between public organizations are good, humanitarian and cultural relations are constantly developing," he said.
Merkel said: "During my rule, we have met many times, finding a way to talk about different issues, and it was very often a joy for me but often a big challenge."
"Ties between Russia and Germany are very close and they touch upon both political contacts and economic cooperation," she said.
Merkel, the leader of Russia's largest European trading partner, will also hold talks with Putin's successor Dmitry Medvedev, who won just over 70% of the vote in last Sunday's presidential elections. Medvedev is to be inaugurated as Russia's new president on May 7.
A Kremlin source said Friday Merkel is to discuss the Nord Stream pipeline project and international issues such as Kosovo and Iran during her visit.
