Oligarchs stall Ukraine progress-top EU official

* Ukraine economy barely changed in 20 years, official says

* Significant progress with EU stalled by closed business

* Comments made ahead of annual EU-Ukraine summit

By Sabina Zawadzki

KIEV, Nov 30 (Reuters) - Ukraine's business oligarchs are stifling the economy by choking competition and are holding up improved trade and economic ties with the European Union, the EU Commission's top official in Kiev said on Monday.

Jose Manuel Pinto Teixeira told a news briefing that the global economic crisis had hurt Ukraine so badly because it had barely reformed in the two decades since the collapse of the Soviet Union.

"Corruption, red tape, administrative obstacles of every kind. These are only things that serve the interests of those who today control the economy because they do not want competition, they are allergic to competition," he said.

"The vast majority of Ukrainians cannot have employment, cannot have decent salaries, do not have a decent social system, because the country today is in many aspects like 20 years ago."