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.