Both leaders spoke of their friendship for one another
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The Russian and US presidents say the Iraq crisis strengthened their partnership despite disagreements over the war.
Russian President Vladimir Putin and US President George W Bush were speaking at a joint news conference after talks in St Petersburg - their first meeting since the war in Iraq.
President Bush has now arrived in France, where he shook hands with President Jacques Chirac, a strong critic of the US-led invasion of Iraq. Mr Chirac is hosting the G8 summit of leading industrialised nations getting under way in Evian.
Russia, France and Germany publicly opposed the US-led war, arguing that UN inspectors should have more time in Iraq to search for weapons of mass destruction (WMD).
But speaking in St Petersburg on Sunday, Mr Bush said the US and Russia "agree that the UN must play a vital role in the reconstruction of Iraq".
After the US and Russian leaders exchanged documents ratifying a previous arms control deal, Mr Bush said the differences over the US-led war would only "make our relationship stronger, not weaker".
We've discovered weapons systems, biological labs, that Iraq denied she had, and labs that were prohibited under the UN resolutions
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His words were echoed by Mr Putin, who said his personal relationship with Mr Bush had withstood the crisis, which had "strengthened" Russian-US ties.
"The fundamentals of US-Russian relations turned out to be stronger than the forces and events that tested them," he said.
Mr Bush invited Mr Putin to visit him at the Camp David presidential retreat in September.
The BBC's Rob Watson, who is travelling with
the US president, described the news conference as the performance of two men determined to be nice.
Concerns over Iran
Asked about the search for WMD in Iraq, Mr Bush referred to two suspected biological laboratories found in the country.
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BUSH TOUR
30 May: Arrived in Poland
31 May: Visit to Auschwitz and speech in Krakow before flying to St Petersburg for meeting with European leaders
1 June: Talks with Vladimir Putin, before flying to G8 summit in Evian
2 June: Talks with President Chirac
3 June: US-Arab summit in Sharm el Sheikh
4 June: Talks with Israeli and Palestinian and Israeli leaders in Jordan
5 June: Meeting General Franks in Qatar
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"We've discovered weapons systems, biological labs, that Iraq denied she had, and labs that were prohibited under the UN resolutions," he said.
Mr Bush also said he and Mr Putin had "mutual concerns about the advanced Iranian nuclear programme".
"We want to work together as well as with the IAEA (International Atomic Energy Agency) to insist that they not have a nuclear weapon," Mr Bush said.
Mr Putin said the positions of Russia and the US were "much closer than they seem".
Both leaders also pledged to bolster their co-operation in the fight against international terrorism.
Mr Putin has been hosting world leaders in St Petersburg to mark the city's 300th anniversary.
Mr Bush arrived in St Petersburg from Poland, where he made a speech urging Europe to present a united front with the US against terrorism and weapons of mass destruction and to forget the divisive issues of the past.
New global challenges
At Saturday's dinner, the US president shook hands and spoke briefly with another anti-war leader, German Chancellor Gerhard Schroeder - their first post-war meeting.
A sobering reminder of the power of evil and the need for people to resist evil
George Bush during visit to Auschwitz
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European Union leaders held a summit with Mr Putin on Saturday, discussing what UK Prime Minister Tony Blair described as "common problems" of terrorism and drug-trafficking.
Mr Putin used the summit to call for visa-free travel for Russian nationals across Europe.
About 40 world leaders were in Mr Putin's home town for anniversary celebrations, which included a laser and fireworks show over the Neva River.
The G8 meeting in Evian runs from Sunday until Tuesday, but Mr Bush is due to leave for the Middle East on Monday.
He will hold talks with Arab leaders in Egypt before heading to a summit in Jordan with Israeli Prime Minister Ariel Sharon and Palestinian Prime Minister Mahmoud Abbas, commonly known as Abu Mazen.