By Richard Johnstone | 21 March 2014

The European Union has signed an agreement to increase trade and financial support to the Ukrainian government after Russia formally confirmed it had taken over the country’s Crimea region.

Following the signing of a treaty to annex Crimea by Russian President Vladimir Putin, the EU said it would support the Ukrainian government in its efforts to stabilise the country and undertake reforms.

Following a meeting of the European Council yesterday, it was announced that member states had agreed to extend association membership to the country. The deal, which was formally signed today, will lead to the removal of custom duties on Ukrainian exports to the economic bloc.

According to the communiqué issued following the meeting, the council will also attempt to reach rapid agreement on financial assistance, which will be coordinated with the International Monetary Fund.

Last month, the country formally asked for help from the IMF as the crisis escalated.