The US and Russia said on Sunday they were interested in creating a joint defence system with Europe against missile threats - though Russia warned it still opposed plans for a US-run missile shield in central Europe.

The declaration came after US president George W. Bush and Vladimir Putin, his Russian counterpart, made limited progress towards bridging divisions between the two countries at a farewell heart-to-heart at Mr Putin's holiday home on the Black Sea. Both will step down in the coming months.