Russia's acting president, Mr Vladimir Putin, told the US Secretary of State, Ms Madeleine Albright, yesterday he viewed Washington as Moscow's main global partner, but the two sides remained sharply at odds over Chechnya.
Ms Albright, speaking to reporters after her first face-to-face talks with Mr Putin since he moved into the Kremlin, praised him as a "problem-solving" leader with strong diplomatic skills.
"Russian-American relations have a global nature and Russia views the United States as its main partner on the whole range of policy," Mr Putin told Ms Albright in televised remarks at the start of nearly three hours of talks in the Kremlin.
"There have been times when Russia took up a fairly harsh position on several international questions in the same way as the US now poses the question of Chechnya in a tough manner," Mr Putin said.
During her three-day Moscow trip, Ms Albright has repeated Western criticisms of Russia's four-month campaign to crush Islamic separatists in Chechnya. She has told her Russian hosts they risk international isolation over the issue and has said only negotiations, not fighting, can end the crisis.
"I do not think we are any closer to a political solution in Chechnya," she said. But she added Mr Putin had said he wanted more autonomy for the region and to rebuild its shattered economy.
Ms Albright, who was due to fly to Croatia later yesterday, said she and Mr Putin also discussed arms control, nuclear non-proliferation and the building of a market economy and civil society in Russia.
She said Mr Putin showed understanding of the need for "strong, effective controls" of arms and nuclear technology exports. The United States fears Russian nuclear know-how may fall into the hands of Iran and North Korea, which it considers rogue states.
Earlier yesterday Ms Albright stressed the need for co-operation between Moscow and Washington during a speech to an invited audience at the Diplomatic Academy in Moscow.
"I think we have an opportunity of unparalleled proportions to work together on common problems, keep our identity and help move the world into a healthier 21st century," she said.
But she again returned to the Chechnya theme. "As long as the fighting continues, it will serve as a magnet for extremism that could one day risk the stability of the entire region," she said. She said she opposed economic sanctions against Moscow, saying that would only worsen things.
Meanwhile, Russia's military said organised rebel resistance was melting away in Grozny and Moscow's troops were accelerating their advance.
The pro-Russian Chechen leader, Mr Bislan Gantamirov, said Moscow's troops were facing very little resistance. Mr Gantamirov confirmed that warlord Shamil Basayev - Russia's most wanted man - was wounded in the leg. He added that troops had killed several Chechen commanders, including the Grozny mayor.