BRUSSELS - The European Commission and Ukraine signed a financing agreement to launch a new program to support Ukraine's regional policy, according to a press release issued by the commission?in Brussels?on Thursday.

The agreement was inked in Ukraine between Valery Pyatnitsky, Acting Minister of Economic Development and Trade of Ukraine, and visiting Commissioner for European Neighborhood Policy and Enlargement Negotiations Johannes Hahn.

The program will support Ukraine's Decentralization and Regional Policy reforms with 55 million euros (about $68.66 million). The funds will be paid in four tranches to the Ukrainian state budget between 2015 and 2018.

Support to Ukraine's regional policy will result in improved regional policy legislation, the provision of stable and predictable financing for regions and municipalities, a strengthened financial autonomy of local authorities, higher competitiveness of regions and improved territorial socio-economic cohesion, according to the press release.

Regional policy covers 45 percent of the EU's 2014 overall budget. The EU has been supporting regional policy in Ukraine with various programs and projects.