Gazprom, Russia's gas monopoly, yesterday drop-ped long-standing demands for stakes in Germany's energy infrastructure, in a sign that Moscow is keen to repair relations with the west, damaged by the Georgian conflict in August.

The move followed talks yesterday in St Petersburg between Angela Merkel, Germany's chancellor, and Dmitry Medvedev, Russia's president, at which the leaders sought to overcome tensions sparked by Russia's incursion into two Georgian enclaves in the summer.