Blair urges summit to fight crime

The summit may help to heal tensions over Iraq

UK Prime Minister Tony Blair has urged the European Union and Russia to step up the joint fight against terrorism and drug trafficking, sidelining continuing tensions over Iraq.

Speaking at the start of the EU-Russia summit in St Petersburg, Mr Blair said both sides were facing "common problems", and that the EU needed Russia's "full support".

"Whatever the differences... this summit has to give a renewed impetus to the sense of urgency to drive the partnership forward," Mr Blair said.

Among the other main issues on the agenda is visa-free travel for Russian nationals across Europe - a dream long cherished by President Vladimir Putin.

Opening the meeting, Mr Putin called for Europe's borders to be broken down, warning against what he described as a "Schengen wall" separating his country from Europe.

His appeal won the support of French President Jacques Chirac, but correspondents say a breakthrough is unlikely at the summit.

Bush-Putin meeting

Later on Saturday, US President George W Bush will join more than 40 leaders from across the globe who have gathered in St Petersburg to mark the city's 300th anniversary.

Spectacular events are marking the city's rebirth

In pictures: Petersburg at 300

Analysis: Bush's grand tour

And on Sunday, Mr Bush will meet the Russian leader for the first time since Moscow publicly opposed the war in Iraq.

During an interview shown on Russian TV on Friday, Mr Bush expressed a desire to co-operate with Russia "for the benefit of any country and universal peace".

Russia has spent $1.5bn to give St Petersburg a face-lift, as President Putin - one of the city's most famous sons - prepared to host what correspondents say is one of the most important summits of his career.

The city - founded by Tsar Peter the Great - has been celebrating its anniversary all week with open-air concerts, laser shows and grand regattas on the Neva River.

During the three days of informal summits, Mr Putin is taking on the role of tour guide, showing world leaders around the palaces and museums of Russia's most European city.

'Schengen wall'

President Putin is holding talks with 14 of the 15 current EU leaders, some of whom were among the most vociferous of anti-war campaigners.

A breakthrough on visa-free travel is unlikely

Leaders from 10 new EU candidate members - expected to join the organisation next year - are also present at the meeting.

Russia has long been demanding visa-free travel to the EU.

Moscow used to enjoy free travel arrangements with most of the candidate members, but now they have to impose the EU-wide visa regulations.

"For many of our ordinary citizens, the present situation is not perceived as anything but a new Schengen wall," Putin said.

He was referring to the EU's Schengen "open borders" agreement, which requires Russian citizens to gain visas to travel to most of Europe .

The Russian enclave of Kaliningrad - sandwiched between Poland and Lithuania - is of a particular concern for Moscow.

But the EU diplomats at the summit say a breakthrough is unlikely as there are other difficult issues waiting to be resolved.

The EU also urged Moscow to seek political settlement in Russia's breakaway republic of Chechnya and to address the issue of its gas and transports monopolies, which make it difficult for the EU to back Russia's bid to join the World Trade Organisation.