"Ukraine has come a very long way in a very short time. Its leaders are clearly determined to tackle the many challenges which remain," said European Commission President José Manuel Barroso.

Barroso was speaking ahead of a Thursday visit to Kiev for the UK-Ukraine Summit.

The Summit, according to the Commission, will demonstrate how well the EU's Action Plan, under the European Neighbourhood Policy, is working in Ukraine. There are three agreements to be signed: on energy cooperation, Galileo, and Aviation. Most important, though, is the granting of Market Economy Status.

"We have kept our promise to launch visa facilitation negotiations in 2005, and tomorrow I look forward to informing President Yushchenko of our intention to grant Market Economy Status to Ukraine," said Barroso.

The EU will restate support for Ukraine's early accession to WTO. At the same time mention will be made of 'remaining issues' before work can start on the creation of a Free Trade Area between the EU and Ukraine.

"The next crucial step will be free and fair elections next March. The European Union remains committed to help Ukraine integrate more closely with the EU through its Neighbourhood Policy," added Barroso.

Last week the EU started negotiations on visa facilitation, to simplify entry procedures for Ukrainians. Part of the deal will include, however, readmission by Ukraine of illegal migrants.