The meeting of the Organization of Black Sea Economic Cooperation (BSEC) took place in a tense atmosphere with host Turkey, the current head of the group, threatening military action against Kurdish rebel bases in northern Iraq.
Turkish President Abdullah Gul warned in an opening speech that Ankara is determined to "take all necessary steps" to combat the Kurdish rebel threat and a US representative reasserted Washington's support for Ankara.
Serbia backed Turkey's crackdown on the separatist Kurdish insurgency, and immediately drew a parallel with Kosovo, warning that the independence of its ethnic Albanian province would set "a dangerous precedent" for other countries with separatist-minded communities.
"Serbia supports Turkey's policies to restore stability along its southern border," Serbian foreign minister Vuk Jeremic told the gathering.
"Recognizing the independence of Kosovo will mean recognizing ... the legitimacy of one day partitioning any country against its will," he said.
Albania's deputy foreign minister Edith Harxhi hit back, asserting "the right of Kosovo ... to enter a process of statehood."
Despite lingering political and territorial conflicts between members, the 12 BSEC nations have strived to develop closer economic ties since the organisation was established in 1992.
"The spirit of cooperation here is encouraging," Gul said.
The foreign ministers of Georgia, Greece, Romania, Serbia, Turkey, and Ukraine attended the gathering, while Albania, Armenia, Azerbaijan, Bulgaria, Moldova, and Russia were represented by deputy foreign ministers.
Participants conceded in a final declaration that "existing conflicts impede cooperation" and called for their "earliest peaceful settlement."
They pledged to enhance joint projects, notably in the fields of energy, trade, and transport.
The BSEC region is the world's second largest source of oil and natural gas after the Gulf, and a major transit corridor for Europe-bound energy supplies.
A senior US official, who attended as an observer, asserted that Washington does not seek to limit Russian natural gas exports to Europe, but insisted that diversifying supplies is crucial.
Russia is often accused of using its gas riches as a political weapon.
"We want the ability of Russia to deliver gas reliably to Europe ... to continue. But reliability also means diversity in supplies," US Assistant Deputy Secretary of State Matthew Bryza said.
"We strongly support anybody who seeks to diversify supply in gas," he said.
A major aim of the BSEC is to upgrade transport infrastructure to boost trade and tourism, including projects for a 7,500-kilometer (4,660-mile) highway around the Black Sea coast and regular maritime links between the ports of member states.
Removing legal barriers to trade is another priority.
Members are also working on an agreement to facilitate visa procedures for business people and truckers transporting goods.
The BSEC covers an area of nearly 20 million square kilometers (7.7 million square miles), with a population of some 350 million people.
Its member states have a total foreign trade capacity of about $300 billion a year.
Ukraine takes over the six-month presidency on November 1.
© 2007 Agence France-Presse
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