Greeting Roh at the Kremlin, Putin disclosed that he and the South Korean leader already met for three hours over dinner late Monday at Putin's country residence and discussed a range of issues.

"Yesterday evening, we had the opportunity to discuss all issues that are sensitive for us," Putin was quoted by Russian news agencies as saying at the start of the talks Tuesday. He did not specify what those issues were.

Roh said however that Russia had a key role to play in bringing stability to the Korean peninsula.

"Moscow may be located on the European continent, but Russia plays an important role in northeast Asia," Roh said. "We thank Russia for this role in bringing peace and stability to the Korean peninsula."

Putin said Russia and South Korea already had "very active" economic relations but added that he and Roh were also determined "to remove all complications, obstacles" that hinder development of bilateral trade ties.

Roh described his talks Monday with Putin as "calm and open" and touching on a range of questions. He said Russia "has become politically very stable, with a high rate of economic growth" during Putin's term in office.

The South Korean leader also noted that his country was interested in development of and access to natural resources in Russia's Far East.

"You have a special understanding and interest in development of natural resources in eastern Siberia, and we take your plans there seriously," Roh said.

The two leaders met face to face and were to be joined afterwards by expanded delegations.

Roh arrived in Moscow late Monday accompanied by a delegation of South Korean business leaders and his three-day visit to Russia was also expected to include signing of a number of bilateral business contracts, they said.

Speaking soon after his arrival, Roh was quoted by news agencies as saying he believed Russia had an "active role" to play in bringing about a solution to the North Korean nuclear standoff.

Russia "plays a very important role in resolving the nuclear problem in the Korean peninsula and I hope it will continue to do so," Roh said.

The respected business daily Kommersant said Tuesday that top leaders in both Russia and South Korea were in agreement that "there is no 'safe' alternative to the regime of Kim Jong-Il" at present in North Korea.

Moscow and Seoul agreed that the most likely path for easing tensions on the peninsula was through a peaceful transformation of the existing North Korean system, underpinned by steady economic assistance, Kommersant said.

They were therefore "prepared to work together" to find ways of boosting economic aid to North Korea through, for instance, a project to link Russia's trans-Siberian railway to a trans-Korean system that runs through North Korea.

North Korea has balked at resuming six-party talks by the end of this month on its nuclear program, and officials from the other countries involved have admitted it would be hard to hold the next round of talks as scheduled.

Putin however is one of the only heads of state or government to have met with the reclusive North Korean leader and some have voiced hope that Russia may have the influence needed to encourage Kim to continue negotiations.

North Korea however has maintained a tougher stance after South Korea disclosed its own nuclear experiments to enrich uranium four years ago and to extract a small amount of plutonium in the 1980s.

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