Putin and Mexican President Vicente Fox firmed up proposals to build a Russian helicopter assembly plant in the gulf coast state of Veracruz and a heavy machinery assembly plant near Mexico City, but Putin said the energy sector also beckoned.
"These are concrete, interesting projects, though small ones, and we are going to support them. But I think that other projects could be of wider scope because some Russian companies already operate in the energy market," Putin told a news conference after talks with Fox.
While Mexican energy is largely closed to foreign companies pending reforms that are continually blocked by opposition lawmakers, Russia has a foot in electricity as a supplier of natural gas to Mexican power plants.
Putin said Russia hoped to supply some liquefied natural gas to the handful of regasification terminals that oil majors are vying to build along Mexico's Pacific coast, to provide an alternative for Mexico to costly U.S. gas imports.
He said Russia, which established diplomatic relations with Mexico in 1891, also wanted to get involved in oil exploration projects, currently limited to state oil monopoly Pemex.
A spokeswoman for Fox said there was no record that any other Russian government leader had ever visited Mexico.
"Our collaboration in energy is important not just for our countries, but also for the world energy market," Putin said.
Neither Russia nor Mexico, major oil exporters, is a member of OPEC, although they have agreed to boost exports in line with OPEC's pledge to hike supply amid sky-high prices.
The two leaders also discussed the latest draft United Nations resolution on the future of Iraq, following the fourth set of modifications in two weeks.
The UN Security Council, of which Russia is a permanent member, is expected to vote on Tuesday on a plan for a military partnership between the United States and Iraq when the U.S.-led occupation officially ends on June 30.
"The resolution has already been modified substantially in a positive direction. We have every reason to think that this could culminate in a positive result if we follow this path," Putin said, asked about the latest draft.
He added: "The occupation forces should be ready to leave the country."
Mexico has not supported U.S. operations in Iraq and used its temporary seat on the UN Security Council in 2003 to oppose Washington in the run-up to the Iraq war.
The two leaders signed various bilateral trade agreements and agreed to study the building of a helicopter maintenance center as a first step toward the Veracruz assembly plant.
Bilateral trade consists mainly of chemicals from Russia, and coffee, tobacco and spirits, like tequila, from Mexico.
Two-way trade totaled $312 million in 2003, Fox told Interfax, saying the figure was lower than it should be, due to poor trade contacts and legal provisions.
Putin, who was in France on Sunday for the celebration of the 60th anniversary of D-Day, was to fly to the United States on Tuesday for a summit of leaders of the Group of Eight industrialized nations in Sea Island, Georgia.
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