Europe has today agreed to Russian demands to ease restrictions at its eastern borders, in an historic move which could ultimately lead to visa-free travel between the two..

EU ministers have previously argued against loosening restrictions along the former superpower's borders but today, at a trade summit with President Putin in London, acceded to the long-standing request.

Tony Blair, who holds the six-month rotating EU presidency, said that the measure would give a "practical grounding" to a relationship which he believed would "grow and prosper and strengthen" in coming years.

As part of the deal, Russia had agreed to readmit people who illegally emigrated to the European Union. The EU, in turn, promised to facilitate visas for Russian visitors

“We believe that these arrangements are a stage that would help us approach a visa-free regime,” Mr Putin said.

Europe's relationship with Russia, which has vast and under-exploited oil and gas reserves, has taken on a new dimension, verging on a dependency, after the growing instability in the world energy markets.

Russia, meanwhile, has become increasingly concerned about the extent to which former Soviet republics - notably Ukraine - are turning toward the West.

At a press conference after the summit, Mr Blair said that progress had been made on a wide range of delicate issues - including human rights and foreign policy - which threaten to undermine the strengthening links.

He dismissed suggestions that the EU's dependence on Russian energy meant it was less keen to apply pressure over sensitive issues such as human rights abuses in Chechnya.

The Prime Minister said that Europe was trying to "make sure that we secure our energy supplies for the future -- but I think that’s sensible.

"Personally, we discuss very frankly issues between us, whether it’s to do with human rights or democracy, or for example we discussed the issue of Chechnya earlier today," he said.

"I don’t think the relationship is one of dependence, either on the Russian side or the European side. But what it is, is a recognition of a very strong set of mutual interests today".

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