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Diplomats said the accord and the talks in Geneva tomorrow could pave the way for the Obama administration to press ahead with a common agenda with Russia which would entail talks on nuclear arms control and on Russian co-operation with US policy on Afghanistan and Iran.The new White House team are clearly hoping to bypass the prime minister and former president, Vladimir Putin, and focus its diplomacy on President Dmitry Medvedev.

For any big shifts in the Russian-­American relationship, Moscow would insist on the shelving of the Pentagon's missile shield project in Poland and the Czech Republic and a freeze in the ­prospects for Ukraine and Georgia joining Nato.

The US and Germany tabled a joint proposal for yesterday's Nato meeting, leaving the contentious issue of Ukraine's and Georgia's membership chances open and urging greater co-operation with Russia "as equal partners in areas of common interest". It went on: "These include: Afghanistan, counter-terrorism, counter-piracy, counter-narcotics, non-proliferation, arms control and other issues."

"Russia is a global player. Not talking to them is not an option," said Jaap de Hoop Scheffer, the Nato secretary-general.

In the first big foreign policy speech from the Obama administration, in Munich last month, the vice-president, Joe Biden, said the White House wanted to "press the reset button" in relations with Moscow after years of dangerous drift.

The agreement today was held up for several hours by Lithuania, which strongly opposed the resumption of dialogue with the Kremlin.France and Germany, keen to develop close links with Moscow, threatened in turn to cancel scheduled meetings last night between Nato and Ukraine and Georgia if "the opening with Russia" was not given a green light, diplomats said.

Today Medvedev joked with a group of students that the remote summit venue, 3,800 miles from Moscow or 5,300 miles via the epic Trans-Siberian Express, had been chosen to remind the Europeans of Russia's vast size. Several EU delegates moaned when Russia held last year's summit with the EU in western Siberia, Medvedev said."They complained: 'Oh, it's a long way.' We said: 'If you don't like it you can fly somewhere else.' They thought for a bit and said: 'OK, we're ready,'" Medvedev said. He added: "They [the Europeans] should understand how big Russia is and should feel its greatness. On the other hand, we also want a partnership with the EU. It's important for us to get together."

"Russia and EU relations are in stalemate. There is a serious lack of mutual understanding, a lack of willingness to understand each other, and a lack of strategic common values," Fyodor Lukyanov, editor-in-chief of Russia in Global Affairs, told the Guardian.He went on: "Relations with Obama and the US are now better. At the same time relations with the EU are getting worse. Since the 1990s Russian-EU relations have been governed by the assumption that Russia would go the European way without applying for membership. This model is now exhausted. They need a new model."

According to Lukyanov, the Kremlin was furious after the EU pressured Belarus this month not to recognise South Ossetia and Abkhazia. "The message was: choose Russia or not Russia. It was absolutely unnecessary from the European side. Alexander Lukashenko [Belarus's president] wasn't going to recognise them anyway for his own reasons," Lukyanov said.

"America wants a strong, peaceful and prosperous Russia."

Crucially, though, Obama indicated that Washington would not tolerate another Russian invasion of Georgia. Russia is winding up full-scale military exercises next to the Georgian border amid ominous predictions that a second conflict in the Caucasus could erupt this summer.

On Monday Obama reaffirmed Georgia's sovereignty – severely undermined by last year's war and Moscow's subsequent unilateral recognition of rebel-held Abkhazia and South Ossetia as independent states. Today Obama defended "state sovereignty", describing it as "a cornerstone of international order".

He also said that Georgia and Ukraine had a right to choose their own foreign policy and leaders, and could join Nato if they wanted. Russia is deeply opposed to Ukraine's and Georgia's accession, and wants the White House to rule out their future membership. Today Obama responded by saying that Nato sought collaboration with Russia, not confrontation.

Iran's Revolutionary Guards stand to be the biggest losers if the S300 system doesn't come through, since there will be little they can do but watch the bombs fall if Western powers attack. Though Russia delivered a smaller Tor-M1 missile defense system to the Iranians last year, it's a localized weapon. The S300 system, according to Jane's Defence Weekly, is "one of the world's most effective all-altitude regional air defense systems, comparable in performance to the U.S. MIM-104 Patriot system." The latest version of the S300PMU2 Favorit has a range of up to 195 kilometers and can intercept aircraft and ballistic missiles at altitudes from 10 meters to 27 kilometers. Though it's hardly clear the S300 will pose a problem for the Israeli or U.S. air forces. The Israelis have trained in avoidance tactics on an S300 system bought by Greece and deployed on the island of Crete; the U.S. Air Force has its own S300 system, which is now deployed for training purposes in the United States. According to one senior Air Combat Command source in Washington, the U.S. Air Force has the S300 "covered."

Regardless of the system's effectiveness, delivery of the S300 will be a key bellwether of Russian relations with the West. Moscow has much less influence over Tehran than it likes to pretend when bargaining with the U.S., and the S300 is one of its few remaining chips.

For years, Russia used construction of the Bushehr reactor by the Russian nuclear company Atomenergoprom as a key element of leverage, shutting down work on the plant for long periods. But now that Atomenergoprom has completed construction and is training the Iranian staff to run it, that leverage has gone. Though Russian staff will remain on-site at Bushehr, the Iranians can now run it on their own.

Russians may have less pull with Teheran than it claims, but it still sees Iran-U.S. enmity as a strategic goal, both because it increases their own diplomatic leverage and because it keeps oil prices high. Furthermore, Russia has been trying to make itself a rallying point for anti-U.S. regimes from Venezuela to Syria and Iran in an effort to restore its status as a world strategic player—a retread of the Cold War model of forging alliances with any Third World dictator who would take Russian money. So while Russia doesn't want Iran to get nukes and historically fears Iranian influence in Central Asia, Moscow has little interest in helping a rapprochement between Iran and the West. Meanwhile, the Kremlin is, cannily or cynically, depending on one's point of view, keeping the S300s on the table, neither committing to scrapping the deal nor delivering the equipment—and reserving the right to continue to tack between Jerusalem and Tehran as self-interest dictates.

Russia has declared a sphere of privileged interest over Ukraine and Georgia, former Soviet states America would like to see admitted to NATO. Russia is considering opening long-range bomber bases in Venezuela. That, in turn, is seen as a response to American plans to position antimissile systems in Poland and the Czech Republic.

No replacement has been negotiated for Start I, and Russia’s support for Iran’s civilian nuclear industry is thwarting Western efforts to dissuade that country from enriching uranium that could also be used in a bomb.

Along with Mr. Kissinger, former Secretary of State George P. Shultz, former Secretary of Defense William Perry and Sam Nunn, a retired Democratic senator from Georgia, were scheduled to meet the Russian president, Dmitri A. Medvedev, on Friday.

Mr. Baker said the United States should show a new humility in international relations.“We ought to be big enough on both sides to admit that blame can be directed at both countries for this deterioration in Russian-U.S. relations,” he said. “There’s nothing wrong with doing whatever we can to get this relationship back on the track it was on up until the last few years.”

But UK Foreign Secretary David Miliband told the BBC that it was not "business as usual" with Moscow. Mr Miliband said the resumption of ties would provide an opportunity to engage with Moscow "in a hardheaded way". He said "the invasion of Georgia and continuing infringement of its sovereignty" could not be "swept under the carpet".

Mrs Clinton added that Nato "should continue to open Nato's door to European countries such as Georgia and Ukraine and help them meet Nato standards".

Earlier, Russia's envoy to Nato defended the war against Georgia and said any new relationship with Nato would be on Moscow's own terms.

Some, like Germany and France, had long been pressing for the resumption of ties with Russia, arguing that their suspension has been counter-productive.

Dmitry Rogozin, Russia's permanent envoy to Nato, predicted an outcome of the Brussels talks "that should, on the whole, satisfy Russia" but made clear he saw Moscow negotiating from a position of strength. "We came out of the crisis that we had after the August 2008 events [the war with Georgia], the crisis in the South Caucasus, stronger," he told Russian channel Vesti TV. "Our Western colleagues saw in Russia a partner that one cannot wipe one's feet on. We are strong... and we are restoring cooperation, including on our terms."

The new offer of discussions comes a day after Russia and the US agreed to resume negotiations on reducing their nuclear arsenals.

Following a decision to let several Nato countries transport supplies via Russia, foreign ministry spokesman Andrei Nesterenko said: "Russia has expressed its readiness more than once to co-operate on these issues, including with the United States

But even though European monitors have long been on the ground, Russia still holds large areas that had irrefutably been under Georgian control, and thousands of Georgians have not been allowed free access to homes far from the disputed territory where the war began.

Several areas under Russian control are at odds with the terms of the cease-fire plan. The most obvious examples are in the Kodori Gorge and the agricultural valley outside the town of Akhalgori

Gilles Janvier, deputy head of the European monitoring mission, said in an interview that Russia had told diplomats that it had entered its own military agreement with the two breakaway regions in Georgia, which the Kremlin recognizes as independent states, and that these newer arrangements rendered the troop withdrawal component of the cease-fire plan obsolete.

“They say there is now a new bilateral agreement between them and South Ossetian and Abkhaz forces that lets them station troops,” Mr. Janvier said.

A senior American official said that Secretary of State Hillary Rodham Clinton raised the subject in her meeting in early March with Sergey V. Lavrov, Russia’s foreign minister, to no apparent effect.

The current concern is that a spark in Crimea — however unlikely — could touch off a violent confrontation or even the kind of fighting that broke out between Russia and Georgia over the breakaway enclave of South Ossetia. The situation is particularly uneasy because the population in Crimea is roughly 60 percent ethnic Russian and would prefer that the peninsula separate from Ukraine and be part of Russia. (Sevastopol has an even higher proportion of ethnic Russians.)

People have been upset by new Ukrainian government policies that require the use of the Ukrainian language, rather than Russian, in government activities, including some courses in public schools. Throughout downtown Sevastopol last week, residents set up booths to gather signatures on petitions in an effort to overturn the regulations.

And on Monday, Ukrainian independence day, ethnic Russians in Crimea held anti-Ukrainian demonstrations.

Sergei P. Tsekov, a senior politician in Crimea who heads the main ethnic Russian communal organization, said he hoped that Russia would wholeheartedly endorse Crimean separatism just as it did the aspirations of South Ossetia and another Georgian enclave, Abkhazia.

Crimean separatists have been encouraged by prominent politicians in Russia, including Moscow’s mayor, Yuri M. Luzhkov, and a senior member of Parliament, Konstantin F. Zatulin, both of whom have been barred from Ukraine by the government because of their assertions that Sevastopol belongs to Russia.The Kremlin has not publicly backed the separatists, though it has declared that the rights of ethnic Russians in Crimea must not be violated.

Russia has also said it wants to link the nuclear talks to U.S. plans to deploy an anti-missile shield in Europe and has pushed for the United States to put a limit on the number of delivery systems -- the rockets or other means that deliver weapons.

There is no guarantee that backing off support for Georgia, whether on NATO or more broadly, would lead to improved ties with Russia. The days when U.S. relations with the states in the Caucasus, Central Asia, and Eastern Europe (Ukraine, Belarus, and Moldova) are viewed through a Russian prism should be long over.

Supporting Georgia's NATO aspirations, however, is a matter of principle. Last April in Bucharest, the alliance declared, "[We] welcome Ukraine's and Georgia's Euro-Atlantic aspirations for membership in NATO." Even while aiming to reset relations with Russia, President Obama has pledged to uphold the principle that "countries who seek and aspire to join NATO are able to join NATO." For NATO's own credibility, Russia cannot be granted a de facto veto over other countries' aspirations for membership. Nor should wishful thinking of better relations with Russia get in the way of Georgia's aspirations, which the United States has encouraged.

North Korea claimed the Taepodong-2 rocket put an experimental communications satellite into orbit, where it is collecting data and broadcasting the Song of General Kim Il-Sung and the Song of General Kim Jong-il.

But US, South Korean and Japanese scientists say the only broadcasts are likely to be from the bottom of the ocean because the satellite failed to reach orbit.

China, a historical ally of and food supplier to North Korea, has called on all sides to remain calm."Our position is that all countries concerned should show restraint and refrain from taking action that might lead to increased tension," Zhang Yesui, the Chinese ambassador to the UN, told reporters.

So far, however, the US and its allies have been unable to persuade China and Russia that the act was a breach of UN security council resolution 1718, passed after long-range missile and nuclear tests in 2006.

The resolution bans Pyongyang from activities related to a ballistic missile programme and calls on the international community to stop trading weapons and luxury goods with North Korea.

The advance in North Korea's ballistic missile technology will raise concerns that the country could one day be capable of delivering a nuclear payload to the US or western Europe.It is likely to interest potential buyers from Pakistan, Iran and Syria, who have sent observers to previous launches.

Russia described the North Korean rocket launch as "regrettable", but stopped short of confirming whether the launch had violated existing resolutions."Before embarking on any actions, we should understand the character of this launch because, at this particular moment, we do not have a clearcut picture," Igor Scherbak, the deputy Russian permanent UN representative, said.

The pact signed today also calls for the number of strategic delivery systems to be reduced to between 500 and 1,100 on each side, from 1,600 under current treaties. Such systems include intercontinental ballistic missiles, submarine-launched missiles and heavy bombers.

Obama said he intended to host a summit on global nuclear security next year. Among a flurry of other bilateral announcements today, Russia said it was prepared to let the US fly troops and weapons across its airspace to Afghanistan.

"We must lead by example and that's what we are doing here today," Obama said of the preliminary nuclear accord. "We resolve to reset US-Russian relations so that we can co-operate more effectively in areas of common interest."

Thousands of US soldiers pass through the Manas base every month on their way in and out of Afghanistan.

It is also home to the large tanker aircraft that are used for in-air refuelling of fighter planes on combat missions, and it serves as a key supply hub.

For Russia, on the other hand, its closure would be a diplomatic victory as it seeks to reassert its influence in former Soviet republics, analysts say.

"I think that the Russians are trying to have it both ways with respect to Afghanistan in terms of Manas," US defence secretary Robert Gates said on Thursday, on his way to Krakow to meet his Polish counterpart.

"On one hand you're making positive noises about working with us in Afghanistan and on the other hand you're working against us in terms of that airfield which is clearly important to us."

On Tuesday, the US commander for the Middle East and Central Asia, General David Petraeus, held talks in Uzbekistan, which has rail links with Afghanistan. The US has already reached deals with Russia and Kazakhstan to send non-military cargo to Afghanistan using their rail networks, but the supplies would have to go through Uzbekistan. The US used to have an air base in Uzbekistan that served troops operating in Afghanistan. But Uzbek authorities closed it in 2005 after criticism from the US and EU over a crackdown on a mass protest in the town of Andijan.

in a meeting with the Defense Ministry's top staff, Medvedev said Russia needed to push ahead with the changes because "serious potential for conflict remains in many regions." He cited the threat of terrorism and local crises such as the war with Georgia in August, as well as "attempts to expand the military infrastructure of NATO near Russia's borders."

government's plan to drastically reduce the number of officers, who now account for nearly one of three Russian soldiers. By eliminating hollow units that are supposed to call up conscripts in the event of war, the government plans to cut the officer corps from about 355,000 to 150,000, shedding more than 200 generals, 15,000 colonels and 70,000 majors. Meanwhile, the number of ground force units would be slashed from nearly 2,000 to less than 200.

Dozens of military academies, research institutes and hospitals would also be shut, and the overall size of the military would fall from about 1.13 million to 1 million.

Medvedev said the changes would address serious flaws in the military exposed by the Georgian war, the first time Russia has sent its forces to fight abroad since the fall of the Soviet Union. Though Russia easily triumphed in the five-day conflict, analysts say the Kremlin was alarmed by problems with aging weapons, communications and equipment, as well as the command structure.

Medvedev said arms procurement would be "almost entirely preserved" this year despite a budget shortfall but added that "large-scale rearming" would have to wait until 2011. Serdyukov said up to 90 percent of the weapons and equipment used by the military are outdated, and he pledged to bring that figure down to 70 percent by 2015.

Boosting bilateral trade between Russia and Latin America, which could reach $15bn (£9.9bn) this year, is another priority for the Russian president during his talks.