Russian President Vladimir Putin told the newly appointed ambassador to China in Moscow Tuesday that priority on his post should be given to forging closer economic ties between the two countries.

"Our trade is developing well enough, but the real prospects are much broader and we still have many reserves," Putin told Sergei Razov, who was appointed ambassador to China in June and will soon leave for Beijing to take office, at a meeting in Moscow.

"I mean the energy sector, in the first place, including the power industry, supply of resources to third countries and, of course, projects in China involving Russian energy companies," Putin said.

"Also, I mean supply of manufactured goods from Russia to China and the other way around, and the promotion of large-scale projects that might provide a driving force to bilateral trade," Putin said.

The Russian-Chinese treaty on good neighborly cooperation signed in 2001 and the settlement of border issues have laid a solid foundation for long-term growth of bilateral ties, Putin said.

As a new step in military cooperation, a large-scale joint military exercise will be held starting August 18 with the use of state-of-the-art Russian arms and large bodies of troops and the armaments of Chinese partners, Putin said.

Razov, 52, was deputy foreign minister prior to his new appointment and had also served as Russia's ambassador to Mongolia and Poland.

(Xinhua News Agency August 10, 2005)