The European Union and Ukraine have signed a third loan agreement for Ukraine worth €1.8 billion. The EU says helping Ukraine’s ailing economy is now one of the biggest challenges for Europe. The bailout is part of a broader package for Ukraine, which includes €25 billion from the IMF and €15 billion from the EU, according to the European Commission Vice-President Valdis Dombrovskis.

The EU stressed the money released is aimed at supporting reforms in Ukraine. “Helping Ukraine to achieve peace and transform the country into a modern, stable and prosperous economy is one of the most important tasks Europe faces today,” Dombrovskis said in the EU statement published Friday. The first €600 million installment will be transferred after the agreement is ratified by the Ukrainian Parliament, he added. FULL REPORT