Russian President Vladimir Putin said Russian trade sanctions on Turkey would be phased out "step by step".
"The priority is to get back to the pre-crisis level of co-operation," he told Turkish President Recep Tayyip Erdogan in St Petersburg.
Their relations soured last November when Turkey shot down a Russian bomber on the Syrian border.
It is Mr Erdogan's first foreign visit since an attempted coup last month. He has since launched a far-reaching purge of the armed forces and other state institutions.
Speaking in St Petersburg Mr Erdogan thanked Mr Putin, saying a call from the Russian leader after the coup "meant a lot psychologically".
He said "the Moscow-Ankara friendship axis will be restored".
After Turkey shot down the Su-24 jet Russia imposed trade sanctions and suspended Russian package tours to Turkey.
Now Russia has decided to resume those package tours - an important source of income for Turkish resorts.
On the Syria conflict Mr Putin acknowledged big differences with Mr Erdogan, but said "we will look for solutions".