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ANKARA (Reuters) - Russia and Turkey agree that a U.S. decision to recognise Jerusalem as the capital of Israel is destabilising the situation in the Middle East, Russian President Vladimir Putin said on Monday.

Speaking in Ankara alongside Turkish President Tayyip Erdogan, Putin also said Russia hoped to sign credit agreements for the defence industry with Turkey in the near future.

(Reporting by Jack Stubbs and Polina Devitt in Moscow and by Tulay Karadenis in Ankara; Editing by Andrew Osborn)

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