The European Commission has proposed new financial assistance of up to 1 billion euro in medium-term loans to Ukraine. The Macro-Financial Assistance (MFA) programme is aimed at assisting Ukraine economically and financially with the current challenges it is facing.
Vice-President of the European Commission Olli Rehn says it is in the essential interest of Ukraine and of the EU to maintain peace and financial stability.
It comes as pro-Moscow forces have stormed the Ukrainian navy's headquarters in the Black Sea port of Sevastopol and raised the Russian flag in an apparently peaceful takeover.
Witnesses said several hundred members of Crimea's self-defence militia and armed men, thought to be Russian troops, forced their way on to the base and raised three Russian flags over the building.
There were conflicting reports about the level of violence involved in the incident, with Interfax reporting that Ukrainian troops were injured after the gates were rammed as the assault began.
But a Ukrainian naval spokesman said there had been no violence and several men in plain clothes – believed to be from the “self-defence” forces – were in talks with servicemen on the base.
“This morning they stormed the compound. They cut the gates open, but I heard no shooting” said Oleksander Balanyuk, a captain in the navy.
The Vice-President of the European Commission Olli Rehn also says the outcome of the referendum will not be recognised by the EU.
“The EU will not recognise the annexation of Crimea and Sevastopol to the Russian Federation” he said.
“The European Council will discuss the situation in Ukraine…and we'll agree a united European response to the latest developments” he added.
