Russian Prime Minister Vladimir Putin said Russia is pinning its hopes on US President Barack Obama to refresh relations between their countries as the two leaders met over breakfast this morning.
After a pre-summit media spat, the pair were seeking to project a polite atmosphere as they met for the first time.
The US president had provoked a sharp response from Mr Putin last week by saying the Russian premier had 'one foot' stuck in the past.
Mr Obama praised Putin - still seen by most as Russia's de facto leader - for his 'extraordinary work' as president between 2000-2008 and now in his new post as prime minister.
He said their talks were an 'excellent opportunity to put US-Russian relations on a much stronger footing.'
'We may not agree on everything, but we have consultations that will serve the Russian and the American people,' he added.
The two leaders exchanged brief pleasantries sitting facing journalists in gold-leaf, baroque chairs on the second floor of Mr Putin's wood-bound home on the outskirts of Moscow.
Barack Obama was accompanied at the early meeting by his national security adviser, Jim Jones, Russian affairs advisor Michael McFaul and Undersecretary of State William Burns. At Putin's side was Foreign Minister Sergei Lavrov.
