Ukraine EU Trade Deal
European Commission President Jose Manuel Barroso (L) and European Council President Herman Van Rompuy (R) welcome Ukraine's President Petro Poroshenko as he arrives at the EU council in Brussels on June 27, 2014. European Union leaders will urge Russia on Friday to stop the flow of weapons and militants across its border with Ukraine and will threaten tougher sanctions, according to a draft statement seen by Reuters. EU officials said it was unlikely however that the leaders would actually give the go-ahead to new sanctions at the summit, when they will be briefed by Ukrainian President Poroshenko. Reuters/Philippe Wojazer

(Reuters) - Ukraine signed a free-trade and political cooperation agreement with the European Union on Friday that has been at the heart of the country's political crisis, drawing an immediate threat of "grave consequences" from Russia.

Georgia and Moldova signed similar deals, holding out the prospect of deep economic integration and unfettered access to the EU's 500 million citizens.

"Over the last months, Ukraine paid the highest possible price to make her European dreams come true," Ukrainian President Petro Poroshenko told EU leaders at a signing ceremony in Brussels.

Russia immediately said "grave consequences" would follow.

Ukraine's former pro-Moscow President Viktor Yanukovich turned his back on signing the EU agreement last November in favor of closer ties with Moscow, prompting months of street protests that eventually led to his fleeing the country. Soon afterwards, Russia annexed Ukraine's Crimea region, drawing outrage and sanctions from the United States and EU.