The European Union (EU) and Ukraine at their special Co-operation Council on Monday agreed to strengthen bilateral relations by enriching the existing Action Plan.

During the council meeting, the EU was represented by Luxembourg 's Foreign Minister Asselborn, whose country holds the rotating EU presidency while Ukrainian delegation was led by Deputy Prime Minister Rybachuk.

The EU in a press release acknowledged Ukraine's European ambitions and made clear that a new commitment to democracy and reforms opened new prospects for both Ukraine and EU-Ukraine relations.

In order to further strengthen and enrich the Action Plan, the EU and Ukraine agreed the following measures:

--To explore possibilities for closer co-operation in the area of foreign and security policy, including European Security Defense Policy, and to address in particular issues of regional stability and enhanced co-operation in both crisis management and nonproliferation.

--To deepen trade and economic relations between EU and Ukraine.Work on agreements for steel and textile products for 2005 will beintensified. The review of the existing feasibility study on establishing a Free Trade Area between Ukraine and the EU will be accelerated once Ukraine has joined the World Trade Organization (WTO).

--The EU agrees to lend further support to Ukraine's WTO accession and to offer Ukraine continued assistance in meeting thenecessary requirements.

--The EU agrees to grant 'Market Economy Status' to Ukraine, assoon as the limited remaining issues have been satisfactorily resolved.

--The EU agrees to maximize Ukraine's access to funding from the European Investment Bank (EIB). Up to 250 million euros (about325 million US dollars) of EIB lending could be made available to Ukraine.

The EU also promised to provide increased assistance to Ukrainethrough the relevant instruments in order to help Ukraine to pursue the reform process.

Ukrainian President Yushchenko is scheduled to arrive here on Tuesday and deliver a speech to EU parliament on Wednesday.

Source: Xinhua