ST PETERSBURG, Russia (AP) - German President Horst Koehler and Vladimir Putin met yesterday in the Russian president's hometown to mark the end of a two-year cultural exchange.

Koehler later attended an organ concert with Putin at the St
Petersburg Philharmonic marking the end of the Russian-German Cultural Encounters 2003-2004 festival. The organ was built in Germany in the 19th century and later restored by a German company.

It was the two leaders' first meeting since Koehler was elected in May 2004.

Putin and German Chancellor Gerhard Schroeder have forged a close relationship, bolstered by Putin's fluent German from his days as a KGB spy in former East Germany.

Schroeder recently adopted a Russian girl from a children's home in St Petersburg.

"Relations with Russia have never been as good as they are today," Koehler said.

Putin also said he and Koehler would discuss the repatriation of artworks seized during World War II, saying "the discussion of this issue should not worsen our relations, but should improve them".

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