CHISINAU (AFP) -- Both Moldova and its breakaway region of Transdniestr Thursday voiced official approval of Russia's proposed plan on settling the longstanding conflict between Chisinau and Tiraspol.

"Naturally, not everything in this plan suits us. However, today like never before the chances of settlement have grown and it would be an unforgivable mistake not to use this situation's benefits," Moldovan President Vladimir Voronin said. Transdniestr's leader Igor Smirnov also praised the plan, which he called "a reasonable compromise for the peoples of Moldova and Transdniestr."

"This document is a good basis for further talks, which would have both sides come to accord," he added.

Earlier this week, Russia presented its peace plan to Moldova and Transdniestr, as well as to fellow mediators in the conflict Ukraine and the Organization for Security and Cooperation in Europe (OSCE).

The plan calls for the country to vote on a new constitution in October 2004 and hold parliamentary and presidential elections in 2005.

To become effective, it needs approval by Moldovan and Transdniestr's presidents and parliaments.

Transdniestr, a predominantly Russian-speaking region, unilaterally declared independence from Moldova in 1991, then engaged in armed conflict with Romanian-speaking Moldovans between 1991 and 1992, with the loss of some 700 lives.

However, the plan did not include several key clauses such as Transdniestr's insistence on making Russian a second official language and keeping Russian troops as a guarantee of peace in the region.

Moldova, on the contrary, would prefer the peacekeeping force to be composed of international troops, even though Chisinau "highly appreciates Russia's peacekeeping effort, especially in the current context," Voronin said.

"But I believe that this format must also be open for the European Union, the OSCE and Ukraine. This is our position that Transdniestr will ultimately benefit from, too," he added.