MOSCOW, April 24 (RIA Novosti) - Russian leader Vladimir Putin praised Monday progress in trade with Kyrgyzstan but said further measures were needed to improve cooperation with the Central Asian republic.

Putin said at a meeting with his Kyrgyz counterpart Kurmanbek Bakiyev that trade between the two countries in 2005 had increased 30% year-on-year to a record $500 million, adding that Russia was aware of Kyrgyzstan's economic difficulties but hoped the situation would improve through cooperation.

"We are aware that many problems remain [in Kyrgyzstan], along with a difficult situation in the Kyrgyz economy," Putin said. "We will outline decisions that will allow cooperation to be stepped up."

Bakiyev, currently in Russia on a two-day visit to Moscow, said Kyrgyzstan's industry was yet to run at its full capacities, but said he hoped the situation would improve.

The two leaders said in a joint statement that they supported joint energy and transportation projects involving Russian companies, including energy giant Gazprom and Unified Energy System.

They also pledged to step up efforts to help the Commonwealth of Independent States, a loose alliance of former Soviet republics, work better and improve cooperation within regional economic and security organizations.

Putin and Bakiyev highlighted the importance of interethnic ties and said they would support the teaching of Russian in Kyrgyzstan and provide conditions for teaching Kyrgyz in Russia. Russian is Kyrgyzstan's second official language.