The European Commission signed a $2 billion loan agreement Friday with Ukraine to help finance a reform agenda, including an overhaul of the energy sector.

European Commission Vice President Valdis Dombrovskis signed the agreement in Latvia with Ukrainian Finance Minister Natalie Jaresko and Ukrainian National Bank Gov. Valeria Gontareva.

"Helping Ukraine to achieve peace and transform the country into a modern, stable and prosperous economy is one of the most important tasks Europe faces today," Dombrovskis said in a statement.

Most of the Russian natural gas headed to the European market runs through a Soviet-era pipeline system in Ukraine. Energy security issues have run parallel to the conflict that grew out of Ukraine's pivot in 2013 away from the Kremlin and toward Brussels.

The Ukrainian government this week said it captured two Russian soldiers during battles in the eastern part of the country.

In April, the World Bank said ongoing conflict in the region has undermined investor confidence in Ukraine. A gradual recovery is possible next year, the bank said, if peace takes hold and structural reforms reach to budget management and the energy sector.

The European Commission said the loan agreement supports an "ambitious reform agenda" outlined by the government in Kiev.

"It covers important economic and structural policy measures in six areas: public finance management; governance and transparency; the business environment; the energy sector; social safety nets; and the financial sector," the commission said.

The Ukrainian government that took power in the wake of political upheaval in November 2013 said the ousted administration of President Viktor Yanukovych left the economy in shambles.

The commission said the release of the first $665 million tranche was imminent.