MOSCOW EXPECTS NEW ISRAELI GOVERNMENT TO CONDUCT POLICY AIMED AT SETTLING RELATIONS WITH ARAB NEIGHBOURS MOSCOW, March 8, 2001. /from RIA Novosti correspondent/. --Moscow hopes that the new Israeli Government will conduct a balanced policy aimed at reaching a just settlement with its Arab neighbours, reads RF Foreign Ministry's statement issued in response to the statement of a new Israeli Government formed on the basis of a wide coalition, including the Israeli two leading political parties of Likud and Avoda. It is the first time that the Israeli Government has won a reliable majority in Knesset in recent years, the document reads. In the opinion of the RF Foreign Ministry, the main objective topping the Middle East agenda today is an early termination of the current Palestine-Israel confrontation. It is possible only in case both sides take reciprocally effective measures to stop violence and ease tension around the Palestinian territories. Primarily, the current blockade of the river Jordan's western bank and the Gaza Strip needs to be lifted. Other measures should provide for economic improvement in the area, prevention of terrorism and other types of violence, and close interaction to enforce law and order. In parallel, it is vitally important to resume the Palestinian-Israeli talks on the basis of the Madrid principles, UN resolutions 242 and 338, the existing political decisions, and the progress that has been made at the previous stage. In this context, Russia, as a co-sponsor of the Middle East peace settlement, confirms its readiness to carry on constructive co-operation with the new Israeli Government to promote stabilization of the general situation in the region, restoration of the Middle East peace process, and development of mutually beneficial co-operation.