ANKARA, Dec 3 (AFP) - Russian President Vladimir Putin arrives in Turkey on Sunday for a historic visit which Ankara hopes will strengthen trust and dialogue between the two countries despite sometimes shaky political ties.
Putin's brief visit, which was postponed from September due to the bloody school hostage-taking in Beslan, will be the first of its kind in 32 years.
"The development achieved in bilateral ties in the last 15 years is incredible," a senior Turkish diplomat said.
"There are no big outstanding issues between us and the aim of the visit is to look into ways of further boosting bilateral ties," he added.
Trade between the two countries has flourished since the end of the Cold War, during which NATO member Turkey shared a high-tension border with the Soviet Union.
Bilateral trade was worth 6.8 billion dollars in 2003 and was expected to reach 10 billion dollars by the end of this year.
Turkish investments in Russia have exceeded 12 billion dollars, Turkish contractors have undertaken projects worth 10 billion dollars and Turkey is now a favourite foreign destination for Russian holiday-makers.
Political ties, however, have at times hit stormy waters with Moscow's accusations that Ankara is turning a blind eye to the comings and goings of Chechen separatist rebels and Turkish charges that Kurdish rebels get safe haven in Russian territory.
But a Turkish diplomat said that the two sides have since stepped up cooperation against their respective dissidents and that the fight against terrorism would also be taken up during Putin's visit.
"There is already cooperation and exchange of information between our interior ministries, our intelligence agencies and our foreign ministries," the diplomat said.
The Russians also complain that Turkey is deliberately restricting tanker traffic through the Bosphorus Strait -- a main outlet for Russian oil to world markets -- at a time when a US-backed pipeline destined to carry Azeri oil via Turkey is nearing completion.
Ankara argues that the Bosphorus is already congested and accidents involving oil tankers are a potential threat to Istanbul, a sprawling megalopolis of 12 million inhabitants bisected by the narrow waterway.
"It has become quite clear that the Bosphorus cannot take any more traffic. Weather conditions often force one- to two-week delays in tanker passages, which means that companies lose money," a Turkish diplomat said.
In a bid to resolve the row, Moscow is reportedly lobbying Ankara for the construction of an oil pipeline through northwestern Turkey, which would by-pass the strait.
But Ankara's heart lies in a conduit stretching from the Black Sea coast to the Mediterranean port city of Ceyhan, which is already home to an oil terminal.
"We believe this is the most viable route, but we are not insisting on any of the options. We just want to save Istanbul," a Turkish diplomat said.
"The ultimate decision lies with the oil companies which will evaluate the options according to their profitability," he added.
Putin will arrive in the Turkish capital on Sunday, accompanied by Russian Defense Minister Sergei Ivanov and Foreign Minister Sergei Lavrov.
Putin will meet Turkish President Ahmet Necdet Sezer, Prime Minister Recep Tayyip Erdogan and parliament speaker Bulent Arinc on Monday before leaving Turkey.
During the talks, the two sides will sign a declaration on "multi-dimensional partnership" which will include calls to stop arms proliferation and efforts to contribute to peace and stability in their region.
Accords on cooperation in the realms of naval search-and-rescue, defense industry, natural gas and trade are also likely to be inked.

12/03/2004 13:20 GMT - AFP