#1 - RW 263
Putin, Blair bury the hatchet over Iraq in state visit, ink huge energy deal
June 26, 2003
AFP

Russian President Vladimir Putin on Thursday buried the hatchet over Iraq with British Prime Minister Tony Blair as the two leaders pledged to work together on tackling global threats.

Putin, wrapping up the first Russian state visit to Britain since tsarist times, said Moscow was willing to support occupying US and British forces in their reconstruction of Iraq although he called for a legitimate government.

Blair and Putin met the press after a working lunch at Downing Street, preceded by the signing of a major energy deal involving British oil major BP. The agreement makes Britain the biggest foreign investor in Russia.

Putin returns Friday to Moscow, after spending four days in London -- plus a sidetrip to Scotland -- as the personal guest of Queen Elizabeth II at Buckingham Palace.

"There are many problems of course, but if we work together, our actions will be more effective. You know that our opinions are not always the same (but) now on key issues that we are tackling today we have come very, very close," Putin told a joint press conference.

Blair said that global divisions over Iraq were ready to be healed as he paid tribute to the leadership of his "friend Vladimir."

"I am quite sure that it is possible now to see how the international community can come back together and can manage to take forward in a constructive way the huge questions that are before us," he said.

"The threat is not a clash between the big world powers. The threat is from extremism and terrorism and unstable states. that's why it's important that we work together," Blair added.

Putin had opposed the US-led war on Iraq, and he appeared to mock Blair during the prime minister's recent trip to Russia for the failure of US and British forces to find any Iraqi weapons of mass destruction.

But visibly annoyed after a journalist asked if he had changed his mind on the issue after ridiculing Blair, the Russian leader said he had always treated it with the utmost seriousness.

"It's a threat in the sense that disruptive elements could get hold of (weapons of mass destruction). Those including British forces who control Iraq must resolve this issue," he said.

Russian and British secret services were cooperating on all aspects of the fight against global terrorism and over Iraq, Putin noted.

The Russian president also said Tehran must give UN inspectors access to its atomic energy facilities, which are suspected to be a cover for a nuclear weapons programme.

Russia is building Iran's first nuclear plant, in Bushehr.

"We discussed the Iran subject and I informed the prime minister about the scale of the Russian-Iranian cooperation. We were united on the need for the encouragement of Tehran in its cooperation with the IAEA," the International Atomic Energy Agency, Putin said.

Trade and investment deals confirmed earlier Thursday included a cooperation agreement to build a gas pipeline under the Baltic Sea.

The proposed multibillion-dollar (-euro) pipeline would link Russia's immense gas reserves to Britain, which is set to become a net energy importer.

Putin and Blair opened an energy summit in London at which BP and Russia's TNK also sealed a joint venture in Russia worth 6.15 billion dollars (5.3 billion euros).

In February, BP announced the largest-ever foreign investment in Russia to create the third-biggest oil and gas company with TNK.

Though Putin has come to Britain before on official business, his trip this week marked the first full-dress state visit by a Russian leader since Tsar Alexander II arrived by ship in 1874 as the guest of Queen Victoria.

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