Putin takes hard line on energy and Georgia

"We are not against the principles that are included in the charter, but we believe that that certain provisions of the charter should be defined better," said Mr Putin.

"I am quite confident that we will be in a position to develop common approaches," he continued referring to discussions between the two sides on renewing a partnership agreement between Moscow and Brussels.

For its part, the EU worked hard on presenting a united front before the Russian president with member states divided over to what extent they should criticise human rights violations and how pragmatic they need to be in light of their strong dependency on gas and oil supplies from their giant neighbour.

Significantly, Berlin and Warsaw, who have previously argued over a Russian-German energy pipeline that bypasses Poland, took a similar line.

"We offer security in contracts and we expect the same from Russia, namely also legal security in contracts and access to the Russian market," said German chancellor Angela Merkel, according to German media.

Polish president Lech Kaczynski said "European investments in Russia have to be as secure as Polish investments in Finland or vice-versa."

Their words come after a series of recent actions against foreign firms – the most recent being keeping foreign capital out of the development of the Shtokman gas field - have set off the alarm bells in national capitals.

Georgia blamed

Russia was equally stony faced at the Lahti meeting about its handling of Georgia, blaming Tbilisi for the recent escalation in tensions between it and its tiny Caucasus neighbour.

"To our great sorrow and concern, the situation is developing in the direction of possible bloodshed," Mr Putin said according to AP.

He accused Georgia of trying to take back the Moscow-friendly breakaway regions of Abkhazia and South Ossetia "by military means."

"This is what you and I should be afraid of ... bloodshed in that region," he added. Russia earlier this month Moscow stopped issuing visas and started deporting Georgians in reaction to Tbilisi's short arrest of four Russian soldiers on spying charges.

Since then the EU has been trying to diffuse the situation and has been calling on Russia to moderate its actions.

Mr Putin's comments, overheard on Thursday, that he envied the Israeli president who is facing rape allegations also featured at the summit.

Russia's Kommersant newspaper had quoted Mr Putin as saying: "He turns out to be a really powerful guy! He raped 10 women!"

A Russian spokesman said his attempt at humour had been lost in translation.