How This Old Brit Sees It ...

But the two leaders failed to resolve differences over the US' planned anti-missile defence shield.

Russia has strongly opposed US plans to base parts of the proposed anti-missile shield near Russia's borders, and recently warned it might target its missiles towards Europe again.

On the vexed question of US plans for a missile defence system in Eastern Europe, President Putin brought a range of new proposals.

These included modernising a radar station in Azerbaijan, which he had previously suggested as an alternative site to Poland and the Czech Republic, and including in the programme a new radar facility being built in southern Russia.

"The relationship of our two countries would be raised to an entirely new level," said Mr Putin, standing alongside his host.

He also suggested including more European nations in the decision-making process.

Bill Clinton derides missile shield plan

YALTA, Ukraine (Reuters)

Former President Bill Clinton on Friday cast doubt on the effectiveness of a planned U.S. missile shield, deriding it as a "colossal waste of money".

Clinton said the defence system, parts of which are to be deployed in Poland and the Czech Republic, had created unnecessary difficulties with Russia, which denounces the plan as an attempt to undermine its defence capabilities.

"My facts may be wrong, but my impression is that we are creating a crisis here when none is necessary," Clinton told a conference in the Ukrainian resort of Yalta on the ex-Soviet state's relationship with Europe.