Moscow - The sting of the financial crisis was the main reason for the European Union in reopening talks on a partnership pact with Moscow despite EU criticism of Russia's war with Georgia in August, a top Russian lawmaker said Tuesday.

Mikhail Margelov, the head of the Foreign Affairs Committee in Russia's upper house of parliament, suggested that the EU's decision was driven by pure economic pragmatism.

"In Brussels they felt how uncomfortable it is to parade around for a long time with their fist clenched," he told the news agency Interfax.

The fact that Europe and Russia need each other economically, especially as the global financial crisis reorders priorities, is obvious as the European Union (EU) said Monday that it would resume negotiations with Russia that it had halted during Russia’s war with Georgia.

On September 1, EU leaders decided to postpone the talks indefinitely after Russia, responding to a Georgian attack on the pro-Moscow enclave of South Ossetia, invaded Georgia, and then recognized the independence of South Ossetia and Abkhazia.

Brussels - European Union foreign ministers sidelined Lithuanian objections Monday and decided to re-start talks on a strategic treaty with Russia which it froze after Russia's August war with Georgia.

"It was a very solid discussion, all EU member states except one are in line to take up the (EU-Russia) partnership talks again," said French Foreign Minister Bernard Kouchner, who chaired the talks as holder of the EU's rotating presidency.

Brussels - The European Union's decision to re-open talks on a strategic treaty with Russia even though its key demand has not been fulfilled may smack of diplomatic defeat, but it is a victory of pragmatism over principle, analysts said Monday.

"It's a question of how the EU could have more leverage in pressuring Russia to meet its interests. Suspending talks is unlikely to have an impact, dialogue is more likely 

Moscow - Russia welcomed the EU's decision Monday to re-start partnership talks frozen over Russia's war with Georgia in August.

"We have long been ready to re-start talks," an official with the government headed by Vladimir Putin said on condition of anonymity as Russia has not officially been informed.

EU leaders suspended talks on a new accord that governs its relations with the EU in protest of Russia's occupation of Georgia.

Riga - With sales of new cars in Latvia shrinking by more than a third in the first ten months of 2008 according to figures released Monday, it was left to carmakers at opposite ends of the price spectrum to report the strongest results.

Total sales of new cars in the Baltic country for January to October dropped to 10,434 from 17,239 in the same period last year, according to the Latvian Authorized Car Dealers Association.