Russian President Vladimir Putin today hailed an agreement on closer political and economic ties with the European Union as a big step towards creating a Europe free of barriers.
Russian and the EU, which expanded to Russia's frontiers when it embraced former Soviet allies last year, were expected to sign the agreement at a summit later today.
"The process of forming a great Europe following the fall of the Berlin wall continues," said Mr Putin at the opening of the EU-Russia summit in the Kremlin. "We want a Europe without dividing lines."
The two sides, who ended talks on the pact last night, also agreed to hold consultations on easing visa regulations and eventually allowing visa-free travel, said a foreign ministry statement.
"I hope the outcome of the summit will be the creation of a sound basis for more dynamic development of relations between Russia and the European Union," Mr Putin was quoted as saying by Itar-Tass news agency.
The two have shared a border in several places since the EU's expansion a year ago to include a string of east European nations, formerly part of the Soviet sphere of influence, and three Baltic states that were part of the Soviet Union.
"I think this summit will give a new impulse to our relations," said European Commission President Jose Manuel Barroso.
EU officials said the agreement, the full text of which would be published later in the day, provided the basis for regular co-operation on key practical issues of trade and political relations.
Agreement came a day after world leaders gathered in Moscow to celebrate the 60th anniversary of the end of World War Two.
The EU is Moscow's largest trading partner with over half of Russia's exports going to the bloc. Russia supplies the EU with around one-fifth of its oil and gas needs.
Moscow hopes the deal, of strong symbolic importance, will help strengthen foreign investor confidence.