Russia's Putin takes Mideast diplomacy to Algeria

ALGIERS, Mar 10 (Reuters) Russian President Vladimir Putin flies to Algeria tomorrow, his first official visit to North Africa as he drums up support across the Muslim world for a renewed diplomatic offensive in the Middle East.

Putin will also discuss trade and military equipment deals with the former Soviet ally, which is drawing growing interest from foreign investors as it looks to renew vital infrastructure after a decade-long civil war.

Putin, who meets Algerian President Abdelaziz Bouteflika tomorrow afternoon, is keen to restore Russia's role as a global diplomatic heavyweight and boost its standing in the Arab world.

His invitation to Hamas for talks last month and an offer to enrich Iran's uranium to help defuse a diplomatic crisis have won him praise in Arab countries.

''In addition to bilateral relations, the two leaders will raise international problems, notably the Iran issue and the situation in the Middle East,'' Algerian state radio said.

Alexei Arbatov, a Middle East expert at Moscow's Institute of World Economy and International Affairs, said Russia wants to become a middleman between the West and the Islamic world.

VISIT CURTAILED Putin had been expected to arrive yesterday for two days of talks during which the two leaders would discuss the possibility of the Kremlin converting Algeria's 5 billion dollar Soviet-era debt into investments and helping the energy-exporting country renew its fleet of jet fighters.

Russian newspaper Kommersant said a last-minute disagreement over detail meant the visit was cut from two days to six hours.

The paper said yesterday that Moscow had agreed to the write-off if Algeria made major arms purchases and gave Russian companies access to its oil and gas fields.

But Finance Minister Alexei Kudrin, visiting Algiers this week to prepare Putin's trip, was unable to get a written guarantee that Algeria would buy additional arms at a meeting earlier this month, the paper said.

The two countries have been discussing a possible purchase by Algeria of Russian MIG-29 combat jets for up to 1.5 billion dollar, according to media reports.

''There have been technical discussions in this direction but the matter needs more time to be settled,'' said Russia's Ambassador in Algiers, Vladimir Titorenko.

Algiers and Moscow have been on good terms since the Cold War and their ties have warmed further since a strategic partnership was signed in 2001.

Some 10 contracts covering air and maritime transport and investment will be signed during Putin's visit, officials said.

The two gas suppliers are also likely to sign an energy deal involving Algerian state oil and gas company Sonatrach and Russia's Gazprom and Lukoil, they added.

Algeria saw its foreign exchange reserves rise to 56 billion dollar at the end of November and plans to spend up to 80 billion dollar by 2009 to boost growth and modernise infrastructure.

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