Russian President Vladimir Putin on Wednesday wound up his visit to the Netherlands, where he received warm reception and saw the signing of documents on wide-ranging bilateral cooperation. But big differences remain between Moscow and Amsterdam over the war in Russia's separatist region of Chechnya.

During the two-day visit, the first state visit to the Netherlands by a Russian leader in 130 years, Putin met Dutch businessmen and parliamentary leaders, held talks with Dutch Prime Minister Jan Peter Balkenende and attended a state banquet with Queen Beatrix and Crown Prince Willem Alexander.

During the banquet at the Noordeinde Palace in The Hague Tuesday evening, Queen Beatrix spoke highly of the "diverse and deep connections" which have existed over the centuries between the two countries. She also praised Putin for the stability and consolidation Russia has achieved since the president came into power.

ECONOMIC LINKS STRENGTHENED

To enhance economic ties was high on Putin's agenda, as he started the visit with a meeting with Dutch Economic Minister Laurens Jan Brinkhorst and heads of big Dutch multinational companies like Shell, Phillips and the ING bank.

He invited Dutch businesses to set up shops in Russia, saying Moscow is doing more to create a legal environment for a fair and transparent market.

Russia is taking measures to combat bureaucracy, improve the efficiency of the tax authority and to protect property rights, he said.

With an average annual economic growth rate of 6 to 7 percent in the past few years, Russia provides an ideal destination for foreign investments, he said.

The Netherlands is Russia's second largest trading partner in Europe immediately after Germany, with bilateral trade almost tripled in the past three years to a record 16.6 billion US dollars in 2004, according to Russian statistics.

Dutch investment in Russia also surged by more than 20-fold in the past five years to 14.2 billion dollars.

During his meeting with Prime Minister Balkenende on Wednesday, Putin said Russia hopes to build on the already dynamic bilateral economic relations and the two sides should further cooperation in sectors like energy, agriculture, technology and food.

A key topic between Putin and his Dutch hosts was a possible Dutch role in developing a Baltic pipeline that will bring Russian gas to northern Europe. Putin said Russia, which holds about a quarter of the world's gas reserves, would study the Dutch request.

The project involves the construction of a gas pipeline across the Baltic Sea and communications lines on the floor of the North Sea, and of gas storage facilities in several European countries.

Dutch companies have long been involved in Russia's energy sector. Oil giant Royal Dutch Shell is developing huge gas and oil projects around the Sakhalin Island in Russia's Far East.

To facilitate business exchanges, a joint Russian-Dutch business council will be set up by mid-2006, through which business people from the two countries can contact one another directly without political intervention, Dutch Economic Minister Brinkhorst said.

On Wednesday, Russian and Dutch delegations also signed four agreements on economic, trade and cultural cooperation. Among them was a Russian-Dutch joint action plan for 2006-2007 which is aimed at promoting mutual investments.

DISAGREEMENT REMAINS ON CHECHEN WAR

While both countries highlighted the importance of their trade relations and the need to intensify them, there is no denying the major divide over Russia's stance on the Chechen separatists.

Balkenende once again expressed "concerns" about Russia's military action in Chechnya during the talks with Putin on Wednesday.

Late last year, Balkenende, then the acting president of the European Union, raised human rights issues in Chechnya during a meeting with Putin in The Hague. Putin responded by questioning the Dutch leader about problems with the Muslim community in the Netherlands.

On Wednesday, Putin firmly rejected the criticism that Moscow had been too harsh on Chechen separatists, saying Russian troops are fighting cruel terrorists.

"If we show a moment's weakness in the battle against terrorists, there will be a lot more victims," said a defiant Putin in front of Dutch reporters who questioned him closely on human rights issues.

He said Moscow will not allow terrorists to "use democratic principles in their struggle against democratic institutions."

Putin did not withhold his anger at European countries, which often criticize Russia's practices in Chechnya while ignoring "major political events" in recent years such as a referendum on the constitution and presidential elections in Chechnya.

He said Russia had invited Europe to send observers to come and see these developments, "but no one came."

Putin called for a common European effort to combat international terrorism, as Russia and Europe share common interests in maintaining stability and security on the whole European continent.

"If we allow terrorists to raise their head in one region they will raise it in another one," he said.

Russia is ready "for broadest cooperation in the anti-terror field at bilateral and multilateral levels," he said.

Balkenende said he had an "open dialogue" with Putin about human rights and the situation in Chechnya.

"It's very important to exchange views on the fight against extremism and terrorism," he said.

The Dutch society "is concerned about the abduction of people, terrorist acts ... in this Caucasian republic (Chechnya)," he said.

Source: Xinhua