Brussels to create Ukraine 'support group'

(BRUSSELS) - The European Commission is set to create a support group for Ukraine to help stabilise the country's economy and to assist with political reform, an official said Tuesday.

The group, due to be formally unveiled Wednesday, will be made up of "several dozen" people and is expected to be led by Stefan Fuele, the commissioner for enlargement and neighbourhood policy.

He will work with the Ukrainian authorities to determine "the aid and assistance they need to stabilise the economy, the political situation, and help with reforms," the official said, speaking on condition of anonymity.

The group will be tasked with coordinating financial help for Kiev from member states and other donors.

The EU unveiled a huge aid programme for Ukraine in March, promising at least 11 billion euros ($15 billion) worth of loans, donations and business deals.

Brussels has also offered Kiev a sizeable reduction in customs duties when trading with the bloc as part of benefits expected to save the country some 500 million euro ($690 million) a year.

For its part, the IMF has announced between $14 and 18 billion (10 and 13 billion euros), although the payout will be conditional on a number of measures, including Ukraine increasing the price of gas and freezing civil service salaries.

The work of the support group could also be extended to include Georgia and Moldova, which are soon due to sign an association agreement with the EU.

With the ongoing crisis in Ukraine still a concern for Brussels, EU foreign policy chief Catherine Ashton spoke to Russian foreign minister Sergei Lavrov on Tuesday to discuss the situation, officials said.

US Secretary of State John Kerry also said Tuesday that he would meet again with Lavrov to attempt to resolve the crisis in Ukraine when he is in Europe next week.