By Roger Runningen and Hans Nichols

President Barack Obama called for a “fresh start” in relations with Russia and praised its global contributions, ending a two-day summit between the world’s two largest nuclear powers.

Obama heads next to Italy, where the Group of Eight leaders of industrialized nations will discuss the global economy, climate change and opposition to Iran’s nuclear program.

Obama used a speech in Moscow yesterday to build on his efforts to repair relations frayed during the Bush administration amid disputes over the eastward expansion of the North Atlantic Treaty Organization, a proposed U.S. missile shield in Europe and Russia’s war with Georgia.

“This must be more than a fresh start between the Kremlin and the White House,” Obama, 47, said. “It must be a sustained effort among the American and Russian people to identify mutual interests and expand dialogue and cooperation.”

Obama made “significant progress” in his talks with Russian Dmitry Medvedev, said James Collins, U.S. ambassador to Russia from 1997 to 2001. “He now has to ensure that the American side follows up on his openings and insist that his colleague in Moscow does the same.”

The two countries’ agreements during the summit covered reducing nuclear arsenals, transit of U.S. arms shipments to Afghanistan through Russia, increased military cooperation, a common effort to combat nuclear proliferation, and ways to increase business ties.

‘Spheres of Influence’

Speaking to graduates of an economics school, Obama sought to end perceptions that “the U.S. and Russia are destined to be antagonists” and competitors for “spheres of influence.”

“In 2009, a great power does not show strength by dominating or demonizing other countries,” Obama said. “The days when empires could treat sovereign states as pieces on a chess board are over.”

Obama can claim enough improvement in U.S.-Russian ties to declare his trip a success, Andrew Kuchins, director of the Russia program at the Center for Strategic and International Studies in Washington, said in an e-mail.

“Obviously, differences remain and hard negotiations will follow, but the comparison between where we were with Moscow in the fall of 2008 and today is pretty stark,” he said.

Americans and Russians “share common ground,” Obama said in his speech, seeking to persuade Russians their interests, from missile defense to combating terrorism, were linked to America’s. He also prodded Russia’s leaders to respect the sovereignty of Georgia and Ukraine.

Georgia, Ukraine

“Just as all states should have the right to choose their leaders, states must have the right to borders that are secure, and to their own foreign policies,” Obama said. “That is true for Russia just as it is true for the United States. Any system that cedes those rights will lead to anarchy. That is why we must apply this principle to all nations, and that includes nations like Georgia and Ukraine.”

He stressed that for those countries to become NATO members, the majority of their population would need to support it. “They must undertake reforms, and they must be able to contribute to the alliance’s mission,” he said, adding that NATO “should be seeking collaboration with Russia, not confrontation.”

U.S.-Russian relations soured last August after Russia’s war with the former Soviet republic of Georgia. The strain was compounded by the U.S. pursuit, under then-President George W. Bush, of a missile-defense system in Eastern Europe and U.S. support for the admission of Georgia and Ukraine into NATO.

Praise for Putin

Obama praised Medvedev’s predecessor, Prime Minister Vladimir Putin, for his service to Russia at a breakfast meeting yesterday with Putin. In two hours of private talks, Obama and Putin discussed several issues and points of disagreement, though oil prices and the dollar didn’t come up, a U.S. official said.

U.S. and Russian leaders both say they want to increase trade and business ties between the two nations.

“The volume of bilateral trade more generally between Russia and the States is not what it should be,” Medvedev said in a July 5 interview with Italy’s Corriere della Sera newspaper.

Trade between the U.S. and Russia rose 35 percent to $36.1 billion in 2008 from $26.6 billion a year earlier, figures from the U.S. International Trade Commission show. Russia’s share of American trade with the world is about 1 percent.

Fortunes ‘Linked'

At a business forum, Obama urged the two countries to unlock their business potential. “Our fortunes are linked and yet so much potential remains untapped,” he said.

Russia’s ruble strengthened 0.0705 to 31.5295 to the dollar from 31.4590 the previous day. The 30-stock Micex Index added 0.2 percent to 927.01 at the close in Moscow as prospects for higher prices lifted OAO RusHydro, the world’s largest publicly traded hydropower producer, and OAO Novatek, Russia’s second- biggest gas producer. The RTS Index increased 0.3 percent to 924.11.

In his speech, Obama cited an “extraordinary potential” for governments to cooperate on “free and fair” trade, energy partnerships and job creation.

“Success depends upon economies that function within the rule of law,” Obama said. “People everywhere should have the right to do business or get an education without paying a bribe.”

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