Russian and Italian leaders said on Tuesday their countries will open energy markets to each other's investors.

Following talks in the Kremlin, Russian President Vladimir Putin and Italian Prime Minister Romano Prodi agreed on access by Russian energy companies to the Italian market in exchange for access by Italian companies to oil and gas extraction in Russia.

"In fact, we are implementing the Energy Charter's supplementary protocol without formally ratifying the document in parliament," Putin was quoted by the Itar-Tass news agency as saying.

Despite European pressure, Russia has not ratified the Energy Charter, a document that would require it to open its export pipeline network and other energy assets to foreign investors.

Prodi said Italy and Russia have opened "a new phase of energy cooperation."

"We no longer have the relations of a seller and a buyer. Russia will be present on the Italian market in the production of electric power," the Italian leader said.

The two leaders also witnessed the signing of an agreement between Russian aircraft maker Sukhoi and Italian aerospace and defense company Finmeccanica on cooperation in a civilian aircraft project.

(Xinhua News Agency June 21, 2006)