Energy, debt, arms dominate Putin's agenda

"The package of agreements that is expected to be adopted in the economic, political and military-technical spheres is rather impressive," said Lavrov, who had handed over a personal message from Putin to the Libyan leader.

Energy will top the agenda of Putin's two day visit in Libya. Russian energy giant Gazprom expressed its interest in Libya and a deal on a gas project is expected to be made, according to Russian media.

Libya has been seeking international cooperation in its nuclear energy project. This issue will also be discussed by the two leaders.

Libya had been a major buyer of Soviet weapons in the 1980s, with military hardware purchases ranging from fighter jets and helicopters to tanks and other equipment.

But following the Soviet breakup and the imposition of UN sanctions, the arms trade between the countries came to an end.

The revival of this trade, therefore, is another important topic for discussions. An aircraft industry source quoted by a Russian newspaper said Russia has prepared arms contracts worth 3 billion U.S. dollars for Putin's visit.

Besides, Putin will also negotiate the repayment of up to 3.5 billion dollars worth of Soviet-era debt to Russia, which Libya hopes to be dropped.

Last month, Putin told a parliamentary meeting that he would try to settle economic differences between the two countries.

Putin's visit to Libya is aimed not only at strengthening bilateral ties, but also heralding Moscow's return to the Middle East.

(Xinhua News Agency April 16, 2008)