STRELNA, July 17 (RIA Novosti) - Differences between Russia and the United States stem from forces that are still influenced by Cold War ideas, President Vladimir Putin said Monday.

"There are forces both in Russia and the U.S. that abide by the thinking of the 20th century, rather than the 21st century, those who live and feed on ideas of the past confrontation," Putin told a news conference at the conclusion of the summit of the Group of Eight industrialized countries near St. Petersburg.

However, relations between Russia and the U.S. have improved drastically in the last few years, the president said, adding that the two countries have close views on many issues.

"While protecting our national interests, we can always find solutions to problems through compromise rather than confrontation," the Russian leader said.

But Putin and his American counterpart George Bush have apparently found little common ground on key issues of bilateral relations during talks ahead of the G8 summit, including Russia's democratic track record, the Iranian nuclear crisis, Russia's accession to the World Trade Organization and the Middle East.