Leaders from eleven countries around the Black Sea are holding a two-day summit in the Ukrainian city of Yalta.

The meeting will formally establish the Black Sea Economic Cooperation Group -- founded in 1993 -- as a regional economic organisation.

The European Union has welcomed the decision, saying it will enhance stability around the Black Sea.

Correspondents say Turkey is one of the driving forces behind the group, which it hopes will strengthen its role in the area.

The eleven members of the BSEC are Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and the Ukraine.