EU launches plan to deepen eastern ties

By David Brunnstrom and Jan Lopatka

PRAGUE, May 7 (Reuters) - The European Union launches a plan on Thursday to foster closer political and economic ties with six former Soviet republics while persuading Russia it is not trying to muscle into its sphere of influence.

Ukraine, Georgia, Azerbaijan, Armenia, Moldova and Belarus, poor east European and Caspian countries mostly neighbouring Russia, are suffering from the economic crisis.

The EU's Eastern Partnership programme, with funding of 600 million euros ($799 million), will aim to promote democratic reforms, economic integration and energy security projects in these nations.

"What we are offering our Eastern neighbours is an increased system of cooperation with them, in economic, social and political terms," European Commission President Jose Manuel Barroso told reporters in Prague.

"That is of course beneficial to them and all the continent in terms of stability."

Czech Deputy Prime Minister Alexandr Vondra, whose country holds the rotating EU presidency, said the plan was aimed at avoiding a vacuum between the EU and Russia which has reacted with some irritation to the plan.

Russian Foreign Minster Sergei Lavrov said he wanted to believe the EU was not trying to build a power base on its borders.

"We shared our concerns that there are those who may wish to present the invited participants with the choice: either you are with Russia, or with the European Union," Lavrov told a news briefing after talks with Polish counterpart Radoslaw Sikorski.