Russian President Vladimir Putin and US President George W. Bush pledged to continue the fight against terrorism during their talks in Moscow, Russian Foreign Minister Sergei Lavrov told reporters after the two presidents' meeting.

Putin and Bush, who arrived here Sunday to attend celebrations on the 60th anniversary of the end of the World War II, agreed that it is necessary to continue the fight against terrorism, Lavrov said.

The two also discussed the situation in Iran and the Democratic People's Republic of Korea (DPRK), and the Middle East.

They also confirmed their intention to reach an agreement on Russia's accession to the World Trade Organization (WTO) before the end of this year, said Itar-Tass.

The Putin-Bush talks came amid strains between Moscow and Washington after Bush on Saturday blasted Soviet "oppression" in the Baltic states.

"I recognize that in the West the end of the Second World War meant peace but in the Baltics it brought occupation and communist oppression," said Bush in Riga, Latvia.

Bush also said the Baltic states were an example of democracy for Russia, the successor of the Soviet Union.

The Baltic states -- Latvia, Lithuania and Estonia -- have also demanded Russian apology for Soviet rule.

Before Bush's arrival, Putin appeared irritated by Bush's criticism. In an interview with American CBS' "60 Minutes" program that aired Sunday, Putin refused to apologize for the Soviet rule of the Baltic states and rejected US criticism about Russia's democracy. "Democracy cannot be exported to some other place," he said.

Some analysts have predicted that Bush's speech in Riga might make for friction in the Bush-Putin summit on Sunday.

But top aides said after the talks that the meeting was amicable and open. Bush's national security adviser Stephen Hadley said Bush's Riga speech was just one issue discussed by the two leaders and they put emphasis on areas of agreement and areas in which they are working together such as Middle East peace, Iran and the DPRK.

Lavrov and US Secretary of State Condoleezza Rice also played down the Riga issue, stressing no topic has been taboo and the two presidents have developed a relationship in which they can talk about any subject.

On Monday, a grand parade will be held in Moscow's Red Square to mark the 60th anniversary of the end of the World War II, in which 27 million Soviet citizens died. Dozens of world leaders will attend the event.