Ukraine: Current Issues and U.S. Policy
Abstract
In January 2005, Viktor Yushchenko became Ukraine's new President after massive demonstrations helped to overturn the former regime's electoral fraud in what has been dubbed the "Orange Revolution," after Yushchenko's campaign color. Some hoped Ukraine might finally embark on a path of comprehensive reforms and Euro-Atlantic integration after 15 years of half-measures and false starts. However, infighting within his governing coalition hampered economic reforms and led to disillusionment among Orange Revolution supporters. The global economic crisis has hit Ukraine very hard. Ukraine's real GDP is expected to drop by 17% in 2009. In November 2008, the International Monetary Fund approved a $16.4 billion standby loan for Ukraine to bolster its finances. The loan was conditioned on a commitment from Ukraine to allow its currency to depreciate in a controlled way, to recapitalize the banking sector, and to pursue more rigorous fiscal and monetary policies. After taking office as President, Yushchenko said that Ukraine would seek integration into the global economy and Euro-Atlantic institutions. Ukraine joined the World Trade Organization (WTO) in May 2008. In the longer term, Yushchenko seeks Ukrainian membership in the European Union and NATO. Relations with Russia have been tense over such issues as Ukraine's NATO aspirations and energy supplies. U.S. officials have remained upbeat about Ukraine's successes in some areas, such as securing WTO membership, holding free and fair elections, and improving media freedoms, while acknowledging difficulties in others, such as fighting corruption, establishing the rule of law, and constitutional reforms. The Obama Administration has expressed the desire to "reset" relations with Russia, but has warned that it will not accept any country's assertion of a sphere of influence. It has also reaffirmed its support for NATO's "open door" to NATO aspirants such as Ukraine.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 13, 2009
- Accession Number
- ADA513532
Entities
People
- Steven Woehrel
Organizations
- Library of Congress