"This is a good signal showing that even in such delicate matters we can come to precise and correct decisions that will benefit Russia, the United States, and the entire anti-terrorist coalition," Sergei Yastrzhembsky, the Kremlin's top advisor on Chechnya, said late Thursday.

Moscow has long been lobbying Washington to take action against the groups it says are the most active in the breakaway Russian republic, where federal forces have been fighting separatist rebels since October 1999.

Powell first disclosed the terrorist designations, but failed to offer specifics on the names of the groups or the sanctions, in an interview by Rossiya state television.

Russian foreign ministry spokesman Alexander Yakovenko said that Moscow expected a formal declaration to be announced soon. The three groups are set to be put on the joint blacklist drawn up by the US state and treasury departments, and would freeze the groups' US-based assets, a US official said on condition of anonymity.

The groups have not yet been designated "international terrorist groups," he added.

Russia has pushed the United States to add the Chechen rebels to their blacklist, a move that would enable Moscow to further present its campaign as part of the US-led "war on terror."

Diplomatic sources said the three groups were the Battalion of Kamikaze Shahid, the Congress of Peoples of Ichkeria and Dagestan and the United Force of Caucasian Mujahideen -- all led by the Chechen warlord Shail Basayev, who took responsibility for the deadly hostage-taking at a Moscow theatre in October.

Analysts said the timing of the move was meant to offer concessions to Russia, which has strengthened its opposition to US threats of military force as the Iraq crisis has mounted.

Washington "really needs Moscow, in terms of preparing a second resolution," said Yevgeny Volk of the Heritage Foundation.

Russia, a veto-wielding permanent member of the UN Security Council, is opposed to a second resolution that would authorize military force on Iraq and has urged the United States to allow UN weapons inspections to run their course.

"I think this will work, since for Russia, Chechnya is a fundamental subject," Volk said.

Last week, Russian President Vladimir Putin came out in support of a Franco-German declaration that urged a reinforcement of weapons inspections in Iraq and stressed that the use of force must be the last option.

Yet he maintains a close relationship with US President George W. Bush, and has nudged Russia closer to the United States following the September 11 attacks in 2001.

(China Daily February 25, 2003)