NATO acknowledges "challenging" phase with Russia

BRUSSELS (Reuters) - NATO foreign ministers formally acknowledged on Friday growing difficulties in ties between the military alliance and Russia, but said they wanted to work to end disputes on Kosovo and arms control.

Alliance ministers meeting in Brussels issued a statement which made unusually explicit reference to divergences between the two former Cold War foes, which for 10 years have conducted regular discussions to improve ties.

"Ten years after the signing of the NATO-Russian Founding Act, this partnership has entered a challenging phase," they said.

"We value and want to continue our constructive and frank dialogue with Russia, including on issues on which we disagree," they said after a meeting in Brussels.

As expected, ministers failed to narrow differences with Moscow over the future of the Serb province of Kosovo and Russia's suspension of a key European arms control pact in a brief meeting in Brussels with Russian counterpart Sergei Lavrov.

"Did we close the gaps? No," an alliance spokesman said.

Lavrov reiterated Russian demands that international efforts to mediate a compromise between Belgrade and Pristina over the future of Kosovo be allowed to continue past December 10 which the West has set as a deadline.

"We will continue to negotiate and we hope a common agreement will be reached," he told a news conference after the talks.

(Reporting by Mark John and Sue Pleming; Editing by Charles Dick and William Schomberg)