Russian President Boris Yeltsin and his Ukrainian counterpart, Leonid Kuchma, discussed the problems of Chechnya, bilateral relations, European security and cooperation at the UN Security Council.

After the meeting, Ukrainian President Leonid Kuchma, who arrived in Moscow for a brief working visit earlier Monday, told reporters that he discussed with President Boris Yeltsin the entire spectrum of questions related to bilateral relations.

Kuchma expressed his support to Yeltsin on the Russian anti- terrorist operations in the rebelling republic of Chechnya, Yeltsin's senior aide Sergei Prikhodko told reporters after the Yeltsin-Kuchma meeting.

The presidents stressed that Kuchma was the first foreign leader with whom Yeltsin met after his recovery from the latest pneumonia, as well as the fact that Kuchma's first official trip abroad after his re-election on the post of Ukrainian state head was to Russia, said Prikhodko.

This is evidence of the importance attached by both countries to the development of bilateral ties, Kuchma noted.

The presidents also discussed the settlement of Ukraine's debts to Russia for fuel supplies. The possibility of debt restructuring and steps that have to be taken were raised by the two leaders.

Yeltsin and Kuchma agreed in principle on restructuring Ukraine 's debts to Russia, said Prikhodko.

Kuchma told the press the talks on debt restructuring will begin soon.

He noted that retail trade between the two countries has been steadily declining and "there are economic and political reasons for that."

He called the fall in bilateral trade impermissible. "Economy is politics. Therefore this (a sharp fall in trade turnover) should by no means be permitted," he said.

Kuchma also said the sides confirmed cooperation plans in the production of AN-70, TU-334 and AN-140 planes. "This is a priority of all our plans: current and in the future," he said.

Asked about his impression of Yeltsin's health condition, he said the Russian president "looks well, energetic and cheerful."

Yeltsin "is in good spirits, in a good mood, he is energetic and cheerful," he told journalists at the airport before his departure from Moscow for Paris late Monday. (Xinhua)