"We regard the Kashmir problem as purely bilateral....we see no reason to internationalise the issue. Our stand is that third countries should do their utmost to encourage both India and Pakistan to resolve bilateral differences," a Russian foreign ministry official said on recent talks between Pakistani Premier Nawaz Sharif and President Boris Yeltsin.

The official, however, said that Moscow was not averse to assuming the role of a mediator if both countries ask for it.

"If both Delhi and Islamabad ask us to take part in the process we would be ready to do it, but at this stage we see no need to internationalise the issue as this would be counterproductive because of India's stand. The Lahore declaration gives hope for progress," he said. Speaking on the condition ofanonymity, the official said, premier Sharif's five-day trip to Russia, the first ever by a Pakistani premier in over 25 years, had yielded no breakthrough. "It was an important visit, a milestone, the first in 25 years. But certainly no breakthrough."

He dismissed media reports that Russia could supply arms to Pakistan as "pure speculation."

"The issue was touched, we repeated our traditional position," he said. Moscow, a close India ally, traditionally supplies defence goods to New Delhi.

Elaborating further on premier Yevgeny Primakov's proposal for a new Russia-China-India-Pakistan quadrangle, the Russian official said such a quadrangle could help strengthen peace and stability in the region.