Addressing a joint press conference after their meeting, Putin spoke of the potential for the Russian railways operator to participate in the Koper-Divača rail upgrade and Russian companies to get involved in the renovation of the Ljubljana heat and thermal power plant as it switches from solid fuel to gas.

Putin also mentioned that Russian energy giant Gazprom was in talks with Slovenian partners on a new five-year contract to supply natural gas to Slovenia. While Slovenia had hoped for the contract, worth several hundred million euros, to be signed today, talks are still ongoing.

The Russian president also said that in the 25 years of their diplomatic relations, Russia and Slovenia had gained valuable experience in economic cooperation. He listed energy, food, infrastructure, pharmaceuticals and tourism as the areas were the countries cooperated very well.

He, however, admitted that political restrictions were hindering cooperation, but be believes they could be overcome. He said the two countries had managed to stop the falling trend in merchandise trade, also thanks to the stabilisation of the currency and energy prices.

Similarly, Pahor expressed satisfaction that Slovenian and Russian companies would be signing 11 contracts today, hopeful that deals still under negotiation would be closed and that the countries could soon double their trade in goods and services.

Despite the sanctions and the poor EU-Russia relations, Slovenia is cooperating with Russia as much as possible. If all the planned contracts are signed soon, bilateral trade in goods will top one billion euros, although the potential is bigger still, said Pahor.

The Slovenian president believes calming the situation in eastern Ukraine is an important condition for boosting bilateral cooperation and contributing to improving EU-Russia ties.

Pahor said he saw today's "lively exchange of views and positions" with Putin as a way of trying to come to solutions that would calm down the situation in eastern Ukraine.

The withdrawal of weapons would be the first step, to be followed up by securing peace and then continuing the peace process, he said and urged all sides in the conflict to cease fire, which would eventually lead to an improvement in the relations with the EU.

Putin added that he had briefed Pahor on developments in eastern Ukraine and emphasised that the Minsk agreements must be respected.

Putin also put in his word for improving relations with the US after their deterioration in recent years. He said he hoped for the relationship between the two countries to improve in all areas, but that this would also depend on the US and its new President Donald Trump.

Putin said that Slovenia had expressed its readiness to host a meeting between him and Trump, adding that "Ljubljana is a good place for such type of dialogue" and that he had nothing against a summit in Ljubljana, but that the question was whether it would happen.

On the occasion of Pahor's official visit to Moscow, the countries signed an agreement to cooperate in the prevention of money laundering and terrorism financing, a memorandum on cooperation in forestry and a programme of joint measures in tourism in 2017 and 2018.

Later in the day, Pahor also met Prime Minister Dmitri Medvedev, who assessed relations between Russia and Slovenia as very good and based on historical friendship. "Unfortunately, I cannot say that for relations with the EU. We all know the reasons....We all hope that the relations are in for better times."

Pahor meanwhile told Medvedev that relations between Slovenia and Russia were the best possible. As for EU-Russia relations, he said that for them to fully develop, the situation in eastern Ukraine must inevitable be settled.

"If both sides truly wish that, this is not impossible to achieve," said Pahor and added that this would bring a major political, economic, social and security relief and give bilateral relations a new impetus.

Pahor also laid a wreath at the Tomb to the Unknown Soldier in front of the Kremlin and addressed a Slovenian-Russian business conference, as part of which Slovenian companies are expected to sign deals worth more than half a million euros.