Russian President Vladimir Putin and Greek Prime Minister Costas Karamanlis met for talks Thursday in the Kremlin on a range of issues including the expansion of military cooperation and joint construction of a Trans-Balkan oil pipeline. "Our relations are developing very well but we have especially experienced positive forward movement since your government came to power," Putin told Karamanlis. The Greek leader was on his first visit to Russia since leading the conservative New Democracy party to victory in Greece's March elections. Karamanlis in turn praised "centuries-old ties of friendship and cooperation that unite our two peoples and two countries" and noted many avenues for future cooperation. The leaders were expected to sign a friendship and cooperation document, a bilateral action plan for projects in 2005-2006 and a statement on joint efforts in the struggle against terrorism. Other agenda topics were Russia-E.U. ties, Cyprus, Greek-Turkish relations and the situation in the Balkans. An important focus of the consultations is the planned 300- kilometer oil pipeline between the Bulgarian port of Burgas on the Black Sea and Greece's northern Aegean port of Alexandroupolis. The link will enable the export of up to 35 million tonnes of oil from the Caucasus each year without having to go through Turkey's Bosphorus Strait by tanker. Major purchases by Athens of Russian armaments are another priority. According to specialists, Russia's military exports to Greece will exceed 1 billion dollars in 2002-2005. Russia also supplied Greece with equipment and weapons worth 1.1 million dollars in 1998-2001, mainly air defense systems, anti-tank systems and landing ships. Karamanlis was due to leave Russia later Thursday after a three- day visit.