Luxembourg wants to work more closely with Russia in the automotive and steel industry explained Luxembourg's Prime Minster Jean-Cluade Juncker on Tuesday following a meeting with Russian President Dmitry Medvedev on the Black Sea coast.

"Luxembourg is an ancient steel power. Our experience and knowledge could benefit our two countries" Juncker said after a meeting with Medvedev at his residence Bocharov Rutschej in Sochi.

In addition, Luxembourg is ready to help Russia establishing the Moscow financial centre, said Juncker. Luxembourg is one of the largest financial centers, however, should not been seen as a pipeline that sucks money out of Russia. "On the contrary, we are working with Russian companies for the financing of the economy." explained Juncker.

Medvedev expressed his hope that the Russian investment would grow in Luxembourg. The role of Luxembourg in total foreign investment in Russia amounts to 36.5 billion U.S. dollars, almost 14 percent. Russian investments in Luxembourg isonly a billion dollars and therefore still modest.