Russian President Vladimir Putin wrapped up a two-day official visit to Egypt on Wednesday, the first by a Kremlin leader in 40 years, which is key to boosting bilateral relations in all domains.

MIDEAST PEACEPROCESS

Putin on Wednesday offered to host an international conference on Mideast peace in Moscow in autumn.

"I am suggesting that we should convene a conference for all these countries concerned with the Mideast peace process," Putin said at a joint press conference with Egyptian President Hosni Mubarak.

Contacts were underway to determine the level of participation and the agenda for the conference which is expected to gather members of the Quartet, said the Russian leader.

As a member of the Quartet of international mediators for Mideast peacemaking, which also includes the United States, the United Nations and the European Union, Russia's foreign policy is traditionally considered pro-Arab and pro-Palestinian.

Ahead of Putin's visit, Egypt's Ambassador to Russia Rouf Saadsaid at a press conference that coordination of actions between Egypt and Russia, including at the highest level, is very important in view of the complicated situation in the Middle East.

Egypt, a major power in the Middle East, has been playing an important role in propelling the long-stalled peace process between the Palestinians and Israel.

It hosted a summit between Palestinian leader Mahmoud Abbas andIsraeli Prime Minister Ariel Sharon in its Red Sea resort of Sharmel-Sheikh on Feb. 8, which came out with the announcement of along-aspired mutual ceasefire.

BILATERAL ECONOMICAL TIES

The joint declaration signed after Putin-Mubarak talks confirmed their intention to build up mutually beneficial economic, scientific and technical cooperation, particularly in the area of energy, oil and gas production.

A joint committee formed by experts of the two countries will work more effectively to achieve more cooperation in economic, high-tech, energy and space fields, said Putin.

Russian delegation sources earlier revealed their talks with Egyptian business society focused on ways to create an atmosphere conducive to implementing a number of cooperation projects in trade, economic and technical fields.

The Egyptian-Russian relations are improving steadily. The bilateral trade exchange was estimated at 834 million US dollars in2004 with the Russian exports to Egypt up by 90 percent and the Egyptian exports to Russia up by 50 percent compared to 2003.

Using Russia's expertise, Egypt is also building a number of plants which produce automobiles and equipment.

In 2004, some 700,000 Russians visited Egypt. The figure isexpected to top 1 million this year.

TRADITIONAL FRIENDSHIP

Putin stressed Wednesday that his visit to Egypt was his first to an Arab country since he became president in 2000, which is aimed at bolstering ties with a region where the former SovietUnion once wielded tremendous influence.

"My colleagues and I think we must start direct communications with Arab countries, starting with Egypt," he said.

The last Kremlin chief to make an official state visit to Egyptwas Nikita Khrushchev who in 1964 inaugurated the first stage in the construction of the Aswan High Dam, which was partly financedand built with Soviet help.

But the close ties between Cairo and Moscow were cut after former Egyptian President Gamal Abdel Nasser died in 1971 and his successor Anwar Sadat adopted pro-American policies.

Putin is likely to revive the traditional friendship between the two countries with Mubarak who visited Russia five times since he took power in 1981 and cancelled economic and trade sanctions imposed by Sadat.

Analysts believe there is scope for Russia and Egypt to improve relations, including commercial ties that are currently blossoming.

"Putin's presence in Egypt will rekindle enthusiasm about long-lost ties," said Fyodor Lukyanov, editor of the Russian Global Affairs quarterly journal.

"Egypt never forgets those who support it at times of hardships," Egyptian Foreign Minister Ahmed Abul Gheit said Tuesday on Putin's visit.

He said it is natural to witness increasing cooperation among Pyramids architects and the High Dam builders.