MOSCOW mayor Yuri Luzhkov has visited Bulgaria with the message that a revival in trade relations will benefit both countries.

"It is high time Russia and Bulgaria turned around and faced each other," Luzhkov said upon arriving.

"I have said it a thousand times and I will never get tired of repeating that the two states are not welcome in the West and if we develop bilateral trade-economic relations, we will live better."

Luzhkov was in Sofia on a three-day visit at the invitation of Sofia mayor Stefan Sofianski.

Luzhkov said the two countries had significant co-operation in the pharmaceutical industry and two-way trade in this sector had increased substantially in the past few years.

"Bulgarian goods, medicines and canned foods are competitive on the Moscow market," he said.

"Moscow will import 18 groups of Bulgarian medications," Luzhkov said.

"Bulgarian drugs are traditionally popular in Russia, but in the 1990s their importation almost stopped," Luzhkov said.

Bulgarian President Georgi Purvanov said Bulgaria's strategic European orientation did not preclude good relations with Russia, but rather required them.

"However, it is more important to seek a new pragmatic future for bilateral relations, while staying true to the traditions," Purvanov said.

He described as "a breakthrough" the bilateral contacts at various levels in the past 18 months.

Developing economic relations was the central topic discussed during the meeting at the Presidency as well as later on with Prime Minister Simeon Saxe-Coburg.

Saxe-Coburg and Luzhkov talked about the possibility of increasing trade, and Russian investments in Bulgaria.

"Hundreds of millions of dollars may be invested in Sofia, if Moscow sees the benefit," Luzhkov said at the opening of the House of Moscow in Sofia. The office will be aimed at encouraging small business, tourism and trade-economic relations.

After his meeting with Luzhkov, Deputy Prime Minister and Economy Minister Nikolai Vassilev called the mayor "a charismatic personality with a wide circle of affiliates and friends in Bulgaria".

Luzhkov said the decision to introduce visas for Russian citizens was a mistake. According to him, setting up firms to fill in the documentation for the Russians, because they did not like dealing with papers, could solve the issue.

In January, Purvanov will visit Russia, according to Luzhkov. The visit will be unofficial.

"During the visit Russian Patriarch Alexei II will give Purvanov an award for his contribution to the Orthodox religion," said Boika Bashlieva, Purvanov's press secretary, quoting Luzhkov.