BERLIN 

The EU will continue working on a customs union update with Turkey, German Chancellor Angela Merkel said Thursday.

Following talks on the first day of the EU leaders' summit in Brussels, Merkel said that comprehensive talks on relations with Turkey were held during the meeting.

She said that the EU Commission submitted a report on how the migration deal with Turkey can be extended, adding that it was agreed with an additional funding of £3 billion ($4.17 billion).

"We will continue the work on the customs union, and of course we expect constructive attitude from Turkey. We have also seen an improvement in the situation in the Mediterranean,” she said.

As for Russia, Merkel said the leaders discussed under what conditions to communicate and work with it.

She also said formats and conditions for starting dialogues with Russia are being worked on.

"But for me, it is important to maintain the format of dialogue and work on it. Personally, I'd like a bolder step to be taken here," she emphasized.

"We have all made it clear what core values we follow here," Merkel said, recalling that the summit had sparked discussions about the law on homosexuality in Hungary.

"The EU Commission will be busy with the law in Hungary," she added.

*Writing by Merve Berker