The European Commission is ready to provide further assistance to Ukraine, which has been hit hard by a deep recession.

"Today the Commission has proposed new macro-financial assistance (MFA) to Ukraine, of up to EUR 1.8 billion in medium-term loans," the EC said in a statement.

The new MFA programme, which is to be approved by the European Parliament and the Council of Ministers of the EU, is intended to assist Ukraine economically and financially, considering the critical challenges the country is facing, including a weak balance of payments and a poor fiscal situation.

The intention is also to help the new reform-orientated government strengthen the country, and deal with economic and political challenges. The macro-financial assistance proposed on January 8 will be linked to certain reform initiatives, the EC said.

"Our actions speak louder than our words. The European Union has provided unprecedented financial support and today's proposal proves that we are ready to continue providing that support," European Commission President Jean-Claude Juncker said when commenting on the EC's proposal.

Once the MFA decision has been adopted, a prerequisite for disbursement will be the successful continuation of Ukraine's current IMF program and the implementation of economic and financial policies in particular that the Commission – on behalf of the EU – and the government of Ukraine will agree on in a Memorandum of Understanding, the EC said.

The policies that the Commission considers important include further fiscal consolidation, continuation of the comprehensive reforms in the energy and banking sectors, as well as improving overall macroeconomic management.

It will also be important to strengthen economic governance, transparency and pursue judicial reforms and the fight against corruption in order to improve conditions for business activity and sustainable growth.

Subject to the adoption of the Commission proposal by the European Parliament and the Council, the proposed new EUR 1.8 billion program can be implemented in the course of 2015, and in early 2016.

It would be the third MFA program for Ukraine since 2010. In the course of 2014 alone, the Commission disbursed EUR 1.36 billion in support of Ukraine under existing programs. The disbursement of the final tranche of EUR 250 million under these programs could be expected by the spring of 2015, subject to successful implementation by Ukraine of agreed policy measures and a continued satisfactory track record with the IMF program.