Russia and Egypt have signed an agreement opening the way for Russian firms to bid for contracts to build nuclear power plants in Egypt.

The deal was signed on Tuesday after Vladimir Putin, Russia's president, and Hosni Mubarak, Egypt's leader, met near Moscow for talks which also covered Russia's plan to host a Middle East peace conference.

Egypt wants up to four nuclear power stations. An international tender to build the first of them may come as early as this year.

Mubarak said: "Egypt, in co-operation with its international partners and the International Atomic Energy Agency is going to develop this sector, including through the agreement we have just signed.

Tuesday's agreement clears the way for Russia's state nuclear contractor to bid for the project.

The Kremlin is lobbying hard for contracts to build nuclear power plants abroad because it sees the industry as the type of high-technology sector it must develop to reduce its dependence on oil and gas exports.

Russia is already building nuclear reactors worth $1.5bn to $2bn each in Iran, China and India.

Moscow conference

Meanwhile, after about two hours of talks with Mubarak at his Novo-Ogaryovo residence, Putin said his officials were consulting the United States and Middle East countries about hosting a regional peace conference in Moscow.

Russia is a member of the quartet of Middle East mediators with the US, the United Nations and European Union.

The Kremlin is seeking a bigger mediation role as it tries to re-establish itself as a Middle East power-broker, a role it largely lost when the Soviet Union collapsed.

PHOTO CAPTION

Presidents Vladimir Putin of Russia (L) and Hosni Mubarak of Egypt meet in the Novo-Ogaryovo presidential residence outside Moscow March 25, 2008.

Al-Jazeera