Putin, speaking after almost four hours of talks with DPRK's reclusive Kim Jong-il, said the new link would help revitalize Russia's depressed and underpopulated Far East.

"We spoke, as before, mainly about bilateral relations with an accent on the economic theme, relating to the possibility of linking the trans-Siberian with the Korean railroad," Putin told reporters. "We looked at the details."

Earlier, Putin told regional leaders Russia needed the freight link from the peninsula to Europe to cross Russia's Far Eastern region instead of taking a short cut across China and joining the trans-Siberian further to the west.

Moscow stands to reap billions of dollars in transit fees once the DPRK opens its part of the railway and ROK goods start pouring to Europe across Russia.

Russia's huge trans-Siberian railway, stretching from Europe to Asia, has remained largely idle since the collapse of the former Soviet Union. Reopening the closed line across DPRK would link Russia to Asia's economic powerhouses.

Putin said Moscow would continue to try to reduce tensions on the divided peninsula.

"Russia has helped and will continue to do its best to contribute to a settlement on the Korean peninsula," he told journalists. "There are positive elements (in the talks between Seoul and Pyongyang) and, in any case, the DPRK's goodwill is obvious."

(Xinhua News Agency August 24, 2002)