President Vladimir Putin, meeting with EU leaders on Friday, will seek to advance Russia’s economic interests in Europe, defend its handling of foreign investors in its major oil and gas projects and deflect criticism of its heavy-handed response in a dispute with Georgia.

Europe and the US moved closer to a world trade showdown over plane subsidies, as Airbus said it had received “legally binding” government funding pledges for its newly-launched A350 jet programme.

Talks between the ISIC 21 consortium and the German Defence Ministry over a €6.5bn deal to modernise the armed forces' IT network have collapsed, a Ministry spokesman said.