Putin rebuffs EU on access to Russia's 'holy' energy interests

President Vladimir Putin on Thursday rebuffed EU insistence on greater access to Russia's state-controlled energy sector, demanding that Europe offer something of equal value in return for a share of the "holy of holies" of the Russian economy.

"If our European partners expect us to allow them into the holy of holies of our economy -- energy ... then we want reciprocal steps that help our own development," Putin said at a news conference following a Russia-EU summit in this Black Sea coastal city.

Putin insisted that Russia had always been and would remain a reliable supplier of energy to the European Union, but he said the EU's push for European energy companies to have access to Russia's energy extraction and transport infrastructure would go nowhere without fair "compensation."

"If our partners expect some kind of exclusive on resources from us, for us to organise a completely liberal policy on extraction and transport, then the question arises: What do we get in return?" Putin said.

"Access to resources and transport? Where? Where's your extraction, where are your reserves? If this isn't there -- and it isn't -- then we want some kind of compensation," he continued.

In remarks to Russian reporters after the press conference, shown on state television, Putin compared the EU to a envious child trying to snatch away a piece of candy from a playmate without offering anything in return.

He said the talks had been "open" and "direct" -- diplomacy-speak for something closer to "tense" -- but made clear Russia was satisfied with the summit.

At the press conference European Commission President Jose Manuel Barroso said there was "a problem of lack of trust in Russia as a credible supplier" following a brief cut-off of Russian gas supplies to Ukraine in January during a price dispute.

Putin quickly rejoined: "Russia was, is and will be a reliable supplier."

He said Russia would pursue plans to diversify its markets for energy -- notably by developing more energy transport links to Asia -- but also assured EU leaders that plans to expand shipments to China would not compromise energy shipments to Europe.

The European Union -- the world's second largest energy market -- depends on Russia for 26 percent of its gas supplies, and there are growing calls for Europe to diversify its energy sources away from Russia.

Putin said at the start of Thursday's talks that Russia was taking measures to "strengthen the energy security of the European continent" with the aim of "improving the quality of life of Europeans."

Speaking confidently, the Russian president also hit back at recent criticism from US Vice President Dick Cheney, who accused Russia of using its energy resources as "tools of manipulation and blackmail" for political ends.

"We see how the United States defends its interests," Putin said at the news conference.

"When we fight for our interests, we also look for the most acceptable methods to accomplish our national tasks and I find it strange that this seems inexplicable to someone," Putin said.

Even as differences remain over energy, Brussels and Moscow stressed common ground on stopping a determined Iran from pushing ahead with uranium enrichment -- seen in the West as part of a secret plan to build a nuclear bomb.

"It is crucial that Russia and the EU find a solution to Iran," Barroso said following Thursday's talks.

Ahead of the summit meeting, Sergei Yastrzhembsky, Putin's envoy to the European Union, said: "We will think how we can find a way out of this complex situation together."

The European Union and Russia also signed accords that will make short-stay visas for travel between most of the European Union and Russia easier to obtain, as well as simplifying rules on multiple-entry documents.

As part of the deal, Russia also undertook to readmit illegal immigrants -- both Russian and third-country nationals -- who enter the European Union from Russian territory.