Russian President Dmitry Medvedev believes that relations between Russia and Germany are a factor of stability in the Euro-Atlantic region, the Itar-Tass news agency reported on Thursday.

"Despite arising differences we understand each other's interests and take them into consideration," Medvedev was quoted as saying at the Russian-German forum held in the northern Russian city of St. Petersburg.

German Chancellor Angela Merkel (L) and Russian President Dmitry Medvedev (R) talk at the Russian-German forum held in the northern Russian city of St. Petersburg October 2, 2008. [Xinhua/Reuters]

The regular round of the consultations confirms "the maturity of the Russian-German partnership," Medvedev told German Chancellor Angela Merkel, who was also attending the forum.

"The ability to listen to and hear the partner, to discuss differences and clear them through a dialogue is now needed more than ever," he said.

Merkel agreed it is important that the two countries exchange opinions regularly, saying these consultations would help intensify the Russia-Germany dialogue.

The Russian president also described the world financial turmoil as the first and foremost problem at present.

"The latest developments have proved that no economy, no matter how powerful and strong it is, may assume the powers of a mega-regulator," he was quoted as saying by the RIA Novosti news agency.

"We need new mechanisms for adopting collective decisions and collective responsibility," he said.