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MOSCOW, Dec. 29 (Xinhua) -- Russian President Vladimir Putin and German Chancellor Angela Merkel on Sunday discussed by telephone the exchange of prisoners in east Ukraine, Russian gas supplies to Europe and the situation in Libya.

The two leaders gave a positive assessment of the "all for all" prisoner swap that took place in the Donetsk region on Sunday, said a Kremlin press release.

Putin and Merkel also discussed issues of cooperation in the gas sector, confirming the readiness for further support of the Nord Stream 2 project.

Progress was noted in negotiations on the continuation of Russian gas transit through Ukraine after Jan. 1, 2020, the Kremlin said.

Regarding the situation in Libya, the expediency of making political and diplomatic efforts to resolve the crisis, including the mediation of Germany and the UN, was emphasized, according to the Kremlin.