Paris: Russian President Dmitri Medvedev must follow through with his reform programme and root out corruption, French President Nicolas Sarkozy said on Tuesday, urging ever closer ties between Paris and Moscow.

Speaking at a dinner in honour of the visiting Medvedev, Sarkozy said France and Russia had the same goals and needed to cooperate, burying the legacy of the Cold War.

"We have to close ranks, the Russians and the French, because we have the same objectives," Sarkozy said, adding that the two countries had to work together to prevent the proliferation of nuclear weapons, notably in Iran.

He also said Medvedev should honour his domestic political commitments.

"Pursue your reform programme, pursue your modernisation programme, pursue all your policies against corruption and for a rule of law ... out of respect of your own promises," he said.

Nearly two years after his election, analysts have said there is little evidence that Medvedev is implementing promises to open Russia's controlled political system, modernise its oil-fuelled economy and fight rampant corruption.

Non-government organisations (NGOs) and business chiefs complain that corruption is as bad as ever or worse, while Kremlin-friendly regional bosses accused of unethical behaviour have been re-appointed.

Sarkozy has been eager to forge close ties with Moscow since he took office in 2007, looking to make Paris a major commercial and diplomatic ally, and has tended to avoid delicate issues such as allegations of human rights abuses in Russia.

Praise

On Tuesday he praised Medvedev's commitment to improving rights in Russia.

"Your attachment to the rule of law, to the respect for legality, for judicial security, for the defence of human rights greatly helps the rapprochement between our nations," he said.

Medvedev started his visit on Monday, with his delegation of businessmen signing accords in the energy and transport sectors.

In a controversial move, Sarkozy also said France was in talks to sell four Mistral-class helicopter carriers to Russia, which would be Moscow's largest arms deal with a member of the North Atlantic Treaty Organisation (Nato).

Washington and some east European allies have expressed concern at the mooted sale, fearing it would greatly enhance Russia's capacity for rapidly deploying its forces.

Outlook

Russia's central bank may institute new measures to dampen the inflow of "speculative capital" into the country.

Bank Rossii may raise capital reserve requirements for banks on foreign currency deposits and banks' liabilities to non-residents, it said in a report published on its website earlier this week. Higher taxes on foreign borrowing by corporations and control of foreign borrowing by companies in which the state holds a stake are among "other measures under consideration", the central bank said.