Russia urges G8 nations to bury "Cold War ghosts"

Writing in the Financial Times newspaper, he rejected U.S. Vice President Dick Cheney's claims last week that Russia is playing power politics with its vast energy reserves.

"We are deeply puzzled by recent commentary in the West that distorts Russian energy policies," Khristenko wrote. "Russia has moved away from Soviet-era arrangements of subsidizing energy prices to our neighbors and turned to market-based pricing mechanisms.

"We are aware that old impressions fade slowly but it is time for the West to recognize and acknowledge the maturing role and state of progress that Russia has achieved."

Cheney's comments angered Russia ahead of the G8 summit of industrialized nations in St. Petersburg in July, which President Bush is due to attend.

Khristenko urged all sides to "allow dated impressions to fade away" and try to find common ground on an energy security policy at the meeting.

"Let us hope that this July, when the leaders of our fellow G8 countries come together ... they will do so in the same spirit of serious dialogue and practical collaboration and not let our worthy goals be derailed by Cold War-era ghosts," he wrote.

Asked about the Russian energy minister's comments, White House spokesman Scott McClellan said: "We've already expressed our views and we want to continue to work closely with Russia on issues of mutual concerns."

McClellan, on board Air Force One, also told reporters traveling with Bush to Florida: "The president has a good relationship with president Putin and he will continue to express our concerns as we also work together on shared priorities."

Cheney said on Sunday his comments were "rather measured," and Bush said in a newspaper interview that Moscow was sending "mixed signals" on democracy.

Russia drew international criticism this year when it briefly turned off its gas taps to Ukraine in a pricing dispute that disrupted supplies to Europe.

Moscow has also warned Europe the Russian state gas monopoly Gazprom, the world's top producer, could divert supplies to Asia if it is barred from the European market.

Gazprom wants to expand into downstream gas distribution in western Europe and has said British energy utility Centrica Plc is a potential acquisition target -- though it has defended its own monopoly of Russian gas exports against EU calls for this to be liberalized.

(additional reporting by Tabassum Zakaria in Washington)

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