Kiev, July 28 (IANS): Russian President Vladimir Putin Saturday urged Ukraine to take further steps towards closer economic integration with the Russia-led Customs Union (CU).

"Today there is a very tense competition in world markets. I'm sure we can be competitive and win in this rather tough competition only through joint efforts," reported Xinhua citing Putin during an international conference.

He arrived in Kiev Saturday for a two-day working visit.

Despite the global financial slowdown, the Russian president said, the trade turnover within the CU rose some 3 per cent in the first quarter of the current year, while bilateral trade between Ukraine and Russia was down 17 per cent in the same period.

Close cooperative ties between Ukraine and Russia can provide the basis for new economic linkage in various areas, he said, adding that in particular the two states may create a single transport network and unified energy system.

Ukraine must decide on its own whether it wants to align itself with the CU, Putin said, adding that Russia would respect any Kiev's choice.

Ukraine, which has announced a strategic course of integration with the European Union, is reluctant to obtain full CU membership.