RUSSIA - May 17 - Moscow-EU Summit.

At the start of the talks in the Kremlin with the EU leaders, including the head of the European Commission Romano Prodi, EU foreign policy and security commissioner Javier Solana, and Swedish PM Goran Persson, Pres. Putin says: "The significant role that the EU is playing in the European and world policy is objectively pushing us towards closer co-operation". EU leaders urge Moscow to start accepting euros instead of dollars for its exports, promising a boom in investments and trade. (Moscow currently gets paid in dollars for its oil and gas exports to Europe). The two sides sign a joint communique, agreeing to discuss the issue in detail. Prodi strongly pushes for the use of the euro, saying it would help strengthen trade, attract new investment and balance Russia's hard currency reserves. He said at a Kremlin news conference: "It is a clear sign of commitment to closer relations between the EU and Russia". Putin avoided the euro issue, but hailed Prodi's proposal to consider a concept of a common European economic space. He also urged the EU to lift anti-dumping barriers imposed against some of Russia's exports. Prodi and others also mentioned progress on a proposed Energy Charter that would encourage EU investments into Russia's energy sector. But they said that proposal needed more work by experts. Putin and the EU leaders also discussed EU assistance for the destruction of Russia's chemical and nuclear weapons arsenals, environmental programs and joint action against money laundering and organised crime. Putin said: "Our meeting was constructive, rich in substance and extremely fruitful", adding that the relations with the EU were a priority for Russia. But EU officials also criticised the conduct in the war in Chechnya. Persson urged Moscow to investigate allegations of atrocities against civilians. He said: "That's the way to regain confidence by the population". Putin acknowledged that civilians had suffered in the 20-month-old war, but again insisted that the campaign had been needed to crush people whom he termed religious extremists. He said the Chechen rebels wanted to establish a separatist Islamic state stretching from the Black Sea to the Caspian. He compared the rebels with Albanian separatists in and around Kosovo, and tried to turn the tables on the EU, saying that if the Albanians were not disarmed, they would spread crime and violence throughout Europe.