Obama agrees arms cuts, Afghan transit with Russia

By Matt Spetalnick and Oleg Shchedrov

MOSCOW (Reuters) - Visiting President Barack Obama and Kremlin leader Dmitry Medvedev agreed a target for cuts in nuclear arms and a deal to let U.S. troops fly across Russia at the start of a trip intended to mend strained ties.

At a cordial, formal news conference in the Kremlin's vast, gilded St Andrew's Hall, the two leaders spoke of their resolve to put differences behind them and focus on cooperating to solve global problems such as the spread of nuclear weapons.

Both mentioned the issues that still divide them -- Russia's opposition to Washington's plans for a missile defense shield in central Europe and U.S. insistence on Georgia's territorial integrity -- but stressed the positives in public.

Obama praised Medvedev as a "straightforward, professional" leader who understood the interests of the Russian people and wanted to understand those of the United States, adding:

"We have resolved to reset U.S.-Russia relations so that we can cooperate more effectively."

At a signing ceremony, Obama and Medvedev, wearing identical dark suits, white shirts and red ties, pledged to finalize a treaty by year-end to cut the number of deployed nuclear warheads on each side to 1,500-1,675 from levels above 2,200.

Details of the arms deal were open until the night before Obama's arrival, with negotiators on both sides working through the weekend to secure agreement.