Blair fails to resolve issues with Russia

Tony Blair admitted the G8 summit failed to resolve the issues which have caused increasingly frosty relations between the UK and Russia.

Before leaving the summit, Mr Blair held what he described as very frank talks with Vladimir Putin.

But he conceded they failed to reach an agreement on Iran, the missile defence row, the Andrei Lugovi extradition stand-off and greater independence for Kosovo.

After what appeared to be a terse meeting, Mr Blair said Russia remained a cause of concern for the west.

Ahead of the talks, Downing Street played down the increasingly frosty relations between the UK and Russia, insisting Mr Blair would seek "constructive" talks with Vladimir Putin and not a "stand-up row."

The two leaders discussed Mr Putin's threat to aim its missiles at Russia, Russia's refusal to extradite Andrei Lugovi and Mr Putin's opposition to increased independence for Kosovo, all of which have strained relations between the UK and Russia in recent weeks.

The prime minister's official spokesman (PMOS) said Mr Blair would warn President Putin he is being "counter-productive" with his increasingly hard-line stance.

But, he said the prime minister would not push for a "stand-up row", instead outlining the choices Russian faces and the issues concerning the UK.

The PMOS said: "This is not about grandstanding, it is about being honest, saying what you are doing on a variety of issues. It is not going to be a lecture or a stand-up row, it is going to be a conversation in which Russia has to be honest about the choices facing it.

"The harsh reality is that business will continue to do business in Russia but that is only possible if it is part of a constructive relationship that is transparent and honest.

However, Mr Blair's influence over Moscow remains to be seen.

Sergei Storchak, Russia's deputy finance minister, has already dismissed Mr Blair as an "ex-prime minister" and his warnings as "emotional".

Relations between Russia and the west dropped several degrees after Mr Putin threatened to targets its missiles at Europe if the US pushes ahead with plans to site a missile defence system in Poland or the Czech Republic.

In a private meeting at the G8, Mr Putin suggested to US president George Bush that the US uses a former Soviet radar base in Azerbaijan. Such a compromise would encourage Russia to modify its position, Mr Putin suggested.

Mr Blair also discussed Andrei Lugovi, who Russia are refusing to extradite to face charges in the UK for the murder of Alexander Litvinenko.

The two leaders also held talks on Iran, Kosovo and energy security.

Russia has been signalling it will block UN plans to grant Kosovo internationally supervised independence and is opposed to tougher sanctions against Iran.