The European Union (EU) will provide 1 billion euros (1.38 billion U.S. dollars) of financial support for Ukraine to assist with the country's political transition and to encourage political and economic reforms, it was announced Monday.

The EU's foreign ministers' meeting in Luxembourg approved a package of macro-financial assistance, which will be provided in the form of loans with a maximum maturity of 15 years.

The EU's assistance will be conditional on structural reforms and sound public finances, as well as on Ukraine's respect for effective democratic mechanisms, including a multi-party parliamentary system, the rule of law, and for human rights, a statement said.

Foreign ministers also granted unilateral trade preferences for Ukraine, temporarily removing or eliminating customs duties on Ukrainian exports.

The Ukrainian economy has been in recession since the second half of 2012, with only one quarter of positive growth at the end of 2013. This was quickly reversed in the first two months of this year as a result of the deteriorating political and security situation.