The European Union (EU) Thursday formally announced the EU's recognition of Ukraine's market economy status at the EU-Ukraine summit here.

The recognition was announced by British Prime Minister Tony Blair, whose country is holding the EU presidency.

The move will help this former Soviet republic move closer to the West and make it easier for Kiev to trade with the EU, particularly in steel, one of Ukraine's key exports.

Ukraine has long been seeking EU recognition of its market economy status.

Earlier, shortly before the summit, the European Commission (EC), the EU's executive body, had said Ukraine has fulfilled the technical criteria for such a move.

Ukraine hopes the market economy status will boost its trade relations with the EU as the wealthy 25-member bloc is Ukraine's largest trading partner, with some one-third of Ukraine's exports going to EU countries.

The recognition would help Ukrainian exporters by limiting anti-dumping duties that the EU can impose on the country.

The EC has also promised its strong support for Ukraine's early accession to the World Trade Organization.

Source: Xinhua