The European Commission said on Thursday it is ready to extend new aid to Ukraine of up to EUR 1.8B to help the country cope with a deep recession.

With the conflict in eastern Ukraine having taken a heavy toll on the economy, the new aid package  - the third such programme for the country since 2010 - “is intended to assist Ukraine economically and financially,” the Commission said in a statement.

The proposed new macro-financial assistance (MFA) programme, in the form of medium-term loans, is also intended “to help the new reform-orientated government strengthen the country and deal with economic and political challenges.”

The new aid, which is to be approved by the European Parliament and the EU Council, will be tied to the implementation of certain reforms by the government in Kiev.

”A prerequisite for disbursement will be the successful continuation of Ukraine's current IMF programme and the implementation of economic and financial policies in particular that the Commission and the government of Ukraine will agree on in a memorandum of understanding,” the statement read.

These policies should include further fiscal consolidation, continuation of the comprehensive reforms in the energy and banking sectors, as well as improving overall macroeconomic management.

Ukraine will also have to pursue judicial reform and step up the fight against corruption in order to improve conditions for doing business and achieve sustainable growth, the Commission said.

Subject to its approval by the European Parliament and the EU Council, the proposed new MFA programme can be implemented in the course of this year, and in early 2016.