Medvedev's visit was the first by a Russian president for eight years, and it was met with a rousing welcome. Tuesday marked the day in 1944 that Yugoslav Communist resistance fighters, helped by the Soviet Red Army, drove German forces out of Belgrade and liberated it from Nazi occupation.

But now the cooperation is of a rather different nature. Medvedev came to the city bearing gifts: a loan of 1 billion euros ($1.5 million) and new bilateral deals in education, science and police collaboration. Discussions turned to the two pillars of the Serbia-Russia relationship today: Kosovo and energy.

Medvedev said that Russia supports Serbia's bid for European Union membership, and vowed to stand by Serbia as it continued to protest Kosovo's independence. The breakaway province with a primarily ethnic Albanian population has been recognized as an independent nation by most of the West, but not Russia, which has vetoed its attempts to join the United Nations.

"I once again expressed my gratitude to President Medvedev for the principled and strong support his country had given to Serbia in defending its territorial integrity in Kosovo," Serbian President Boris Tadic said during a press conference following the leaders' meeting.

Feeling the energy

But he also had financial concerns on his mind. The loan from Russia will help cover a 2010 budget deficit that could damage Serbia's ability to meet the terms of a 3 billion euro loan from the International Monetary Fund.

This visit also further developed a deal signed last year to build a natural gas pipeline that crosses through Serbian territory. Russian Gazprom and Serbijagas created a joint venture on Tuesday to design the Serbian portion of the pipeline and construct an underground gas storage facility, with Gazprom holding a 51 percent share in both. It already holds a majority stake in Serbian oil company NIS, which will be modernized using funds from Russia.

"Transnational projects like South Stream are moving forward quickly. The economic development of our countries and the energy security of Europe depend on these projects," said Medvedev. "They prove our historical connection and the friendship that has traditionally linked our two peoples."

Cultural, religious and linguistic ties do indeed run deep between these two nations. But Serbia is also increasingly looking westwards, towards European Union integration.

Mark Lowen, Belgrade/svs/dpa/Reuters
Editor: Michael Lawton