Russia and the European Union (EU) on Tuesday signed a partnership deal that would lead to closer ties in four areas of mutual interest at a Russia-EU summit meeting.

The wide-ranging Russia-EU partnership deal covers economy, freedom, security and justice, external security, culture, education and research.

Speaking at a joint press conference following the summit meeting in the Kremlin, Russian President Vladimir Putin hailed the approval of the deal as a big step toward building a united Europe.

The partnership deal "could help us significantly advance towards building a common Europe without dividing lines and provide conditions for free contacts between people," Putin said.

"We all want to see a democratic and prosperous Russia appealing for foreign investment, as a natural partner for the EU, " said European Commission President Jose Manuel Barroso.

The EU is now Moscow's largest trading partner with over half of Russia's exports going to the bloc, and Russia supplies more than 30 percent of the EU's oil and gas needs.

Putin also emphasized the significance of a common security space, saying "the formation of a single and undivided security space will help efficiently combat terrorist aggression, xenophobia and racial intolerance."

Negotiations on the deal started in May 2003 and a final agreement came Monday at a meeting attended by Russian Foreign Minister Sergei Lavrov, his Luxembourg counterpart Jean Asselborn, EU foreign policy chief Javier Solana and EU external relations commissioner Benita Ferrero-Waldner.

The summit was held a day after the EU leaders gathered in the Russian capital to join other world leaders for a grand celebration marking the 60th anniversary of Soviet victory in World War II.

Negotiations on the deal have staggered on two sticking points linked to the deal -- easing of visa rules for Russians traveling to the EU and returning of illegal immigrants in the EU who were from Russia.

The EU demands that Russia take back those illegal immigrants if it were to ease visa requirements for Russians entering the bloc, a requirement Russia has so far refused.

The two sides agreed to continue negotiations on the two issues, the Russian Foreign Ministry said in a press release.

Source: Xinhua