Putin stance sweetens ex-Soviet states' meet

MINSK, Nov 29 (Reuters) Russian President Vladimir Putin Tuesday lifted sanctions against Moldova and gave hope for a fast end to a gas row with Belarus, sweetening a summit of ex-Soviet leaders marred by dissent and grudges against Moscow.

The summit of the 12-member Commonwealth of Independent States (CIS), created in 1991 to cushion the collapse of the Soviet Union, mainly discussed ways to turn what critics regard as a toothless talking shop into something more practical.

But behind the scenes most leaders were keen to see what they could expect from mentor Russia, which has scared CIS allies by using trade and economic weapons against them, sources in several delegations said yesterday.

A walkout by Russian reporters travelling with the Kremlin in protest at heavy-handed treatment of their colleagues by the Belarussian hosts highlighted tensions at the summit.

Putin moved to defuse the uncomfortable conflict with a close CIS ally, which is led by President Alexander Lukashenko.

''The president, as he told me, considers the problem a 'technical misunderstanding','' Interfax news agency quoted Putin as saying. ''I think we can sort this out.'' The future of the CIS has been in doubt over the past three years since Georgia, Ukraine and Moldova began seeking to join Western institutions like NATO and the European Union.

Georgia, which is considering whether to pull out of the CIS, sent the speaker of its parliament to the NATO summit, taking place yesterday in nearby Latvia.

TRADE WEAPONS Russia has used trade weapons to punish the rebels. It forced Ukraine to swallow a sharp increase in the price of its gas and is now threatening Georgia with an even higher rise.

It also banned the import of Moldovan meat and wine and imposed economic sanctions on Georgia, severing transport links, banning imports of its wine and mineral water and cracking down on Georgians working in Russia.

And Russia's giant Gazprom told Minsk to cede its gas pipeline network or prepare for a sharp rise in gas prices next year, enraging Lukashenko.

The show of force alarmed even some political allies at home. ''We must not only show how we treat defectors ... but also offer benefits for those who want to link their future with us,'' Interfax quoted Russian lawmaker Konstantin Zatulin as saying.

In a move to this effect, Putin agreed with Moldovan President Vladimir Voronin to lift the sanctions on Moldova.

''We agreed on the resumption of shipments of meat and wine from Moldova to Russia,'' Russian news agencies quoted him as saying.

He also was quoted by Russian news agencies as saying after meeting Lukashenko that he hoped a solution to the gas price row could be found soon.

''On the expert level, there is not only a mutual understanding, but also agreements on how to reach the final solution,'' he said.

REUTERS SBA BST0748