SOCHI, January 21 (RIA Novosti) - German Chancellor Angela Merkel discussed Sunday bilateral and international issues with President Vladimir Putin in the Black Sea resort of Sochi.

Russia will expand its hydrocarbon transportation network in all directions to reduce its dependence on transit states, Putin said.

According to the president, Russia will accelerate the construction of networks, including a pipeline along the bed of the Baltic Sea.

Putin also said Russia intends to "speed up the laying of a pipeline to the coast of the Pacific Ocean to use the possibility of sending energy products directly to our consumers."

Putin confirmed Russia's commitment to switch to market relations with all hydrocarbon consumers, saying this will be profitable for all.

"We have always spoken about that and intend to switch to clear-cut, understandable market relations with all partners, and our European consumers are interested in this," Putin said.

Putin also said it was important to start negotiations on a new strategic partnership treaty between Russia and the EU, to replace the existing accord when it expires at the end of this year.

Putin also said it was inadmissible for the Kosovo status solution to be imposed from outside.

Putin and Merkel said the Iran nuclear issue should be solved solely by political and diplomatic means.