NATO, Russia report diplomatic progress

CORFU, Greece, June 28 (UPI) -- NATO and Russia have taken a step toward improving relations damaged last August by the territorial battle in Georgia, diplomatic officials in Greece said.

"The NATO-Russia Council is up and running again also at the political

level," NATO Secretary-General Jaap de Hoop Scheffer said Saturday, speaking at a meeting of ministers in Corfu, Greece.

While they did not appear to make any progress on the issue of Georgia, the ministers discussed potential areas of cooperation, including terrorism, the war in Afghanistan, nuclear proliferation, piracy and drug trafficking, The New York Times reported Sunday.

NATO cut most diplomatic ties with Russia after the war with Georgia, which erupted over two separatist Georgian regions, South Ossetia and Abkhazia. Russia has recognized the independence of South Ossetia and Abkhazia and increased its military presence there.

Speaking to reporters in Corfu Saturday, Russia's foreign minister, Sergey Lavrov, cautioned that NATO must accept the "new realities" in Georgia, CNN reported Sunday.

Saturday's meeting came just more than a week before U.S. President Barack Obama is to travel to Moscow for a summit.