Oil and gas rich Russia forged closer links with Britain and its international oil firms on Thursday, signing multi-billion dollar deals on future supplies for the energy-hungry West

At a London oil conference attended by Russia's president and top Russian and European oilmen, British oil giant BP agreed commercial terms for a joint venture deal worth over $6 billion that was announced earlier this year. Britain and Russia also signed an agreement to co-operate in the construction of a gas pipeline under the Baltic Sea from Russia into Europe and connecting with Britain. The two moves and a recent $10 billion investment by rival Royal Dutch/Shell off Siberia's coast mark growing western investor confidence in Moscow's economic reforms, as well as the industrialised nations' thirst for Russian oil and gas as worries mount over Middle East supplies. They also signal the closest Russo-European cooperation since the Rothschild family sat down with Tsar Nicholas over a century ago, and tie the world's second-largest oil exporter closer to industrialised consumers. "BP and Shell are ready to invest $17 billion and such a decision is a reflection of the positive trends in Russia's investment climate," Russian President Vladimir Putin said. British Prime Minister Tony Blair added: "The things that bind us together in politics, security and economics are very important... Russia is already producing the same level of oil as Saudi Arabia and the potential is enormous." For natural gas, he said the link was not only commercial but of fundamental strategic importance, since the North Sea and other west European fields are maturing while Russia sits on a third of the world's reserves.