MOSCOW, Sept 29 (Reuters) - Israeli Prime Minister Ariel Sharon starts a 48-hour visit to Moscow on Sunday to try to improve relations with Russia and seek its help in Middle East peacemaking, despite differences over Iraq and Iran.
Sharon, who speaks some Russian, will meet President Vladimir Putin, Prime Minister Mikhail Kasyanov and Foreign Minister Igor Ivanov on his second visit to Moscow since he was elected in February 2001.
Both sides want to develop economic, cultural and political ties, especially as Israel has a big Russian immigrant population, but they are not expected to make any breakthrough on the Middle East issues which have long divided them.
"They both want to develop relations but it's an inappropriate time to expect any breakthroughs," said Viktor Kremenyuk, a Russian political analyst.
Russia has criticised Israel's 10-day siege of Palestinian President Yasser Arafat's West Bank headquarters.
On Sunday, Sharon met senior ministers and security officials and decided to lift the siege, which had sparked international condemnation and anger from the United States.
Arafat, in a telephone conversation with Ivanov on Sunday, thanked Russia for its "consistent position in favour of solving the crisis," the Russian Foreign Ministry said.
Ivanov told Arafat Russia was committed to help "overcome the current conflict and move towards a durable peace."
NO BREAKTHROUGH ON IRAN, IRAQ
Sharon's decision to withdraw troops from Arafat's compound, taken before he headed to Moscow, cleared the way for him to concentrate on other issues with Russia.
Israel is pressing Moscow to halt transfers of technology to Iran which it fears could help Tehran develop a nuclear arsenal.
Israel believes Moscow's traditional ties with the Arab world could make it a go-between with Arab states. But it is wary of Russian oil interests in Iraq and, unlike Moscow, favours U.S. military action against Baghdad.
"In Soviet days, Moscow had good relations with Arab states and now has a more balanced role. We recognise the importance of this and want to strengthen relations. Definitely Russia has a big role to play in the region," said a senior Israeli government source.
The source cited differences on some issues, including the 10-day siege under which Israel's army trapped Arafat in his ruined presidential complex after two Palestinian suicide bombings in 24 hours killed seven people in Israel.
But he added: "Even among friends there can be disagreements but the Russian president understands that the predicament we face is a war against terrorism and that we must defend our people. The things we disagree on will not mar relations."
Kremenyuk said progress on issues which divide the two sides was unlikely, particularly as Russia's focus in the Middle East was now on U.S. preparations for possible war with Iraq.
"Russia won't want to hear Israel's lamentations about Iraq, and Israel can expect few results on this issue. On Iran, Russia may not even want to discuss the transfer of technology," he said, referring to Russian plans to help build a nuclear power plant in Iran.
Russia is joint coordinator of Middle East peacemaking with the United States and part of a "quartet" of mediators with Washington, the United Nations and the European Union.
But Moscow's role in the Middle East has diminished since the Soviet Union broke up in 1991, and the United States is the key international player in the region.
Sharon, who returns home on Tuesday, also has domestic political concerns to bear in mind.
The more than one million ex-Soviet citizens in Israel's population of six million are a big slice of the electorate and Sharon will underline the importance of cultural and economic ties at meetings with Russian Jewish leaders.
Sharon had no meetings scheduled with Mahmoud Abbas, a Palestinian leader due in Moscow on Tuesday. Abbas, known as Abu Mazen, could become Palestinian prime minister if Arafat creates the post to share some of his powers under proposed reforms.
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