Russia and the European Union announced a breakthrough agreement on political and economic relations on Tuesday aimed at defusing years of tension that accompanied the bloc's expansion to Russian frontiers. The two sides reached agreement on recasting their trade and political ties in a treaty covering four areas ranging from the economy to external security, the Russian Foreign Ministry said in a statement. They also agreed to hold consultations on easing visa regulations and eventually allowing visa-free travel between the two blocs, said the statement, according to Reuters. Both sides also agreed to discuss arrangements for Russia to take responsibility for the repatriation of illegal immigrants who have left Russia to seek entry into the European Union, in accordance with EU practice. The two have shared a border in several places since the EU's expansion a year ago to include a string of Baltic and East European nations, formerly part of the Soviet sphere of influence. "I think this summit will give a new impulse to our relations," said European Commission President Jose Manuel Barroso on Monday. --More 1343 Local Time 1043 GMT