It is the Russian leader's first visit abroad since his country's economic difficulties which have seen financial markets suffering heavy losses and interest rates at record levels.

In their first meeting of the visit, President Yeltsin and Chancellor Kohl discussed a broad range of issues - but skirted around their differences on Kosovo.

While he and his top aides insist their country has rebounded from last month's collapse, the BBC Moscow correspondent says Mr Yeltsin is expected to seek the Chancellor's help in securing new credits from Western nations.

Mr Kohl is said to be likely to support the idea of further loans, but only within the context of the International Monetary Fund.

Significant partnership

Since the fall of communism, Germany has become Russia's most important trade partner outside the former Soviet Union and a key source of development aid and credit.

It describes the talks with Russia as "consultations" - a formula it only uses for key international partners.

A German government official said Russia's relations with neighbouring Ukraine, the European Union and the Nato military alliance are also up for discussion.

End of an era

Our correspondent on the visit says as Mr Yeltsin prepares to set off for Bonn he may feel he is coming to the end of an era.

This could well be the last of his summits in Germany with Chancellor Kohl. Their friendship which has developed over several years has formed a platform for the development of Russo-German relations.