European Union leaders travel to the source of Russia's renewed power today in search of a new relationship with the Kremlin under President Medvedev.

The first EU-Russia summit since Mr Medvedev succeeded Vladimir Putin opens in the city of Khanty-Mansiysk, the Siberian heartland of the country's oil riches. The political symbolism of the venue, chosen by Mr Putin, is not lost on either side as they strive to rebuild relations after years of friction over energy, trade and democracy.

The Khanty-Mansiysk region produced 57 per cent of Russia's oil last year. Record prices mean that the region of 1.5 million people — 1 per cent of Russia's population — contributes a fifth of the national budget.

“I think that the Government wants to show a part of Russia that is different from Moscow or St Petersburg,” Alexander Filipenko, the regional governor, said. “But the second motivation, perhaps, is that this is the starting point of the energy that comes to Europe and keeps the lights on and heats the homes.”

The region, which contains 7.5 per cent of the world's oil reserves, has been dubbed Russia's Kuwait. Mr Filipenko said that he did not like the comparison, adding with a smile: “They have less oil than us.”

The Kremlin also regards the booming city of 60,000 as a showcase for modern Russia's revival, with gleaming new buildings, fast-rising salaries and a growing population, in contrast to the country's demographic decline. In what is becoming an obligatory symbol of success in Russia, Khanty-Mansiysk has commissioned Lord Foster of Thames Bank to design a 280m skyscraper.

Energy security will be a key issue in the talks between Mr Medvedev and the head of the European Commission, José Manuel Barroso, its foreign policy chief Javier Solana and Janez Jansa, the Prime Minister of Slovenia, which holds the EU's rotating presidency.

Many member states are worried that the EU is too dependent on Russia, which supplies a third of its oil and gas imports. The Kremlin has dismissed the concerns but caused alarm last year when it briefly shut off a key oil pipeline to Germany, Poland, Finland, Slovakia and Hungary in a dispute with neighbouring Belarus.

The most tangible result of the two-day summit, however, is expected to be a declaration that talks will start in Brussels on July 4 to forge a new EU-Russia partnership and co-operation agreement. The talks are likely to last at least 12 months. The previous agreement, signed in 1997, expired last year and talks on a new document were held up by objections from EU states, including Poland and Lithuania.

Mr Medvedev said yesterday that a new strategic agreement with the EU was “the most complex problem of recent times”. He insisted that Russia wanted to resolve differences. Russian officials said that Mr Putin, now Prime Minister, was unlikely to attend. His hugely influential presence, however, is certain to hover over the talks.

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