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Spelling, grammar, and general cleanup, typos fixed: Ukraine’s → Ukraine's (7)
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[[File:Russian language in Ukraine.jpg|right|200px|thumb|Russian language spoken in Ukraine]]
 
[[File:Russian language in Ukraine.jpg|right|200px|thumb|Russian language spoken in Ukraine]]
 
[[File:Ukraine 2010 election.jpg|200px|right|thumb|2010 election results]]
 
[[File:Ukraine 2010 election.jpg|200px|right|thumb|2010 election results]]
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Ethnic tensions in [[Crimea]] during 1992 prompted a number of pro-Russian political organizations to advocate secession of Crimea and annexation to Russia. (Crimea was ceded by the RFSSR to the Ukrainian SSR in 1954, in recognition of historic links and for economic convenience, to mark the 300th anniversary of Ukraine’s union with Russia.) In July 1992, the Crimean and Ukrainian parliaments determined that Crimea would remain under Ukrainian jurisdiction while retaining significant cultural and economic autonomy.  
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Ethnic tensions in [[Crimea]] during 1992 prompted a number of pro-Russian political organizations to advocate secession of Crimea and annexation to Russia. (Crimea was ceded by the RFSSR to the Ukrainian SSR in 1954, in recognition of historic links and for economic convenience, to mark the 300th anniversary of Ukraine's union with Russia.) In July 1992, the Crimean and Ukrainian parliaments determined that Crimea would remain under Ukrainian jurisdiction while retaining significant cultural and economic autonomy.  
    
Official trade unions have been grouped under the Federation of Trade Unions. A number of independent unions, which emerged during 1992, among them the Independent Union of Miners of Ukraine, have formed the Consultative Council of Free Trade Unions. While the right to strike is legally guaranteed, strikes based solely on political demands are prohibited.  
 
Official trade unions have been grouped under the Federation of Trade Unions. A number of independent unions, which emerged during 1992, among them the Independent Union of Miners of Ukraine, have formed the Consultative Council of Free Trade Unions. While the right to strike is legally guaranteed, strikes based solely on political demands are prohibited.  
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The campaign leading to the October 31, 2004 presidential election was characterized by widespread violations of democratic norms, including government intimidation of the opposition and of independent media, abuse of state administrative resources, highly skewed media coverage, and numerous provocations. The two major candidates—Prime Minister Viktor Yanukovych and opposition leader (and former Prime Minister) Viktor Yushchenko—each garnered between 39% and 40% of the vote and proceeded to a winner-take-all second round. The November 21 runoff election was marred by credible reports of widespread and significant violations, including illegal expulsion of opposition representatives from election commissions, multiple voting by busloads of people, abuse of absentee ballots, reports of coercion of votes in schools and prisons, and an abnormally high number of (easily manipulated) mobile ballot box votes. Hundreds of thousands of people took to the streets of Kyiv and other cities to protest electoral fraud and express support for Yushchenko, and conducted ongoing peaceful demonstrations during what came to be known as the "Orange Revolution."  
 
The campaign leading to the October 31, 2004 presidential election was characterized by widespread violations of democratic norms, including government intimidation of the opposition and of independent media, abuse of state administrative resources, highly skewed media coverage, and numerous provocations. The two major candidates—Prime Minister Viktor Yanukovych and opposition leader (and former Prime Minister) Viktor Yushchenko—each garnered between 39% and 40% of the vote and proceeded to a winner-take-all second round. The November 21 runoff election was marred by credible reports of widespread and significant violations, including illegal expulsion of opposition representatives from election commissions, multiple voting by busloads of people, abuse of absentee ballots, reports of coercion of votes in schools and prisons, and an abnormally high number of (easily manipulated) mobile ballot box votes. Hundreds of thousands of people took to the streets of Kyiv and other cities to protest electoral fraud and express support for Yushchenko, and conducted ongoing peaceful demonstrations during what came to be known as the "Orange Revolution."  
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The OSCE International Election Observation Mission found that the November 21, 2004 run-off presidential election "did not meet a considerable number of OSCE commitments and Council of Europe and other European standards for democratic elections…Overall, State executive authorities and the Central Election Commission (CEC) displayed a lack of will to conduct a genuine democratic election process." Other independent observers were similarly critical. On November 24, 2004, the CEC declared Prime Minister Yanukovych the winner with 49.46% compared to 46.61% for Yushchenko. The U.S. and Europe refused to accept the result as legitimate due to the numerous, uninvestigated reports of fraud. European leaders traveled to Kyiv to mediate a political solution between the parties. On November 27, Ukraine’s Supreme Rada passed a resolution declaring that the election results as announced did not represent the will of the people. On December 1, the Rada passed a vote of "no confidence" in the government. On December 3, Ukraine’s Supreme Court invalidated the CEC’s announced results and mandated a repeat of the second round vote to take place on December 26. An agreement mediated by the European leaders resulted in new legislation being passed by the Rada and signed by the President December 8. The electoral law was reformed to close loopholes that had permitted pervasive electoral fraud. The constitution was amended, effective not earlier than September 2005, to transfer power, especially with respect to appointment of ministers, from the president to the cabinet. Yet another law was passed, in first reading, to devolve some powers of the central government to regional councils. In addition, Prime Minister Yanukovych requested and was granted a leave of absence, and Prosecutor General Hennadiy Vasilyev submitted his resignation.  
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The OSCE International Election Observation Mission found that the November 21, 2004 run-off presidential election "did not meet a considerable number of OSCE commitments and Council of Europe and other European standards for democratic elections…Overall, State executive authorities and the Central Election Commission (CEC) displayed a lack of will to conduct a genuine democratic election process." Other independent observers were similarly critical. On November 24, 2004, the CEC declared Prime Minister Yanukovych the winner with 49.46% compared to 46.61% for Yushchenko. The U.S. and Europe refused to accept the result as legitimate due to the numerous, uninvestigated reports of fraud. European leaders traveled to Kyiv to mediate a political solution between the parties. On November 27, Ukraine's Supreme Rada passed a resolution declaring that the election results as announced did not represent the will of the people. On December 1, the Rada passed a vote of "no confidence" in the government. On December 3, Ukraine's Supreme Court invalidated the CEC's announced results and mandated a repeat of the second round vote to take place on December 26. An agreement mediated by the European leaders resulted in new legislation being passed by the Rada and signed by the President December 8. The electoral law was reformed to close loopholes that had permitted pervasive electoral fraud. The constitution was amended, effective not earlier than September 2005, to transfer power, especially with respect to appointment of ministers, from the president to the cabinet. Yet another law was passed, in first reading, to devolve some powers of the central government to regional councils. In addition, Prime Minister Yanukovych requested and was granted a leave of absence, and Prosecutor General Hennadiy Vasilyev submitted his resignation.  
    
The December 26 re-vote took place in an atmosphere of calm. While irregularities were noted, observers found no systemic or massive fraud. The OSCE Mission noted that "campaign conditions were markedly more equal, observers received fewer reports of pressure on voters, the election administration was more transparent and the media more balanced than in previous rounds…in our collective view Ukraine’s elections have moved substantially closer to meeting OSCE and other European standards." On January 10, 2005, after the CEC and the Supreme Court had considered and rejected numerous complaints and appeals filed by the Yanukovych campaign, the CEC certified the results: Yushchenko had won 51.99% of the votes, with 44.20% for Yanukovych. President Yushchenko was inaugurated January 23, 2005.
 
The December 26 re-vote took place in an atmosphere of calm. While irregularities were noted, observers found no systemic or massive fraud. The OSCE Mission noted that "campaign conditions were markedly more equal, observers received fewer reports of pressure on voters, the election administration was more transparent and the media more balanced than in previous rounds…in our collective view Ukraine’s elections have moved substantially closer to meeting OSCE and other European standards." On January 10, 2005, after the CEC and the Supreme Court had considered and rejected numerous complaints and appeals filed by the Yanukovych campaign, the CEC certified the results: Yushchenko had won 51.99% of the votes, with 44.20% for Yanukovych. President Yushchenko was inaugurated January 23, 2005.
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Security forces are controlled by the president, although they are subject to investigation by a permanent parliamentary commission. Surveillance is permitted for reasons of national security.  
 
Security forces are controlled by the president, although they are subject to investigation by a permanent parliamentary commission. Surveillance is permitted for reasons of national security.  
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After independence, Ukraine established its own military forces of about 780,000 from the troops and equipment inherited from the Soviet Union. Under defense reform legislation passed in 2004, Ukraine is strengthening civilian control of the military, professionalizing its non-commissioned officer (NCO) corps, modernizing force structure to improve interoperability with NATO, and reducing troop numbers, all with an eye toward achieving NATO standards. Current force levels are approximately 225,000 (plus 90,000 civilian workers in the Ministry of Defense). The Ministry of Defense plans to continue force reductions by approximately 20,000 personnel per year to reach a final end state of 143,000 by 2011. Ukraine’s stated national policy is Euro-Atlantic integration, including with both NATO and the European Union. NATO offered Ukraine an "Intensified Dialogue on Membership Issues" in April 2005. Ukraine had previously signed an agreement with NATO on using Ukraine's strategic airlift capabilities and has been an active participant in Partnership for Peace exercises, in Balkans peacekeeping, and Coalition operations in Iraq. Ukrainian units have been serving in the U.S. sector in Kosovo, and served in the Polish-led division in Iraq. Currently, Ukraine participates in six United Nations peacekeeping missions and has up to 50 troops serving in supporting roles in Iraq.
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After independence, Ukraine established its own military forces of about 780,000 from the troops and equipment inherited from the Soviet Union. Under defense reform legislation passed in 2004, Ukraine is strengthening civilian control of the military, professionalizing its non-commissioned officer (NCO) corps, modernizing force structure to improve interoperability with NATO, and reducing troop numbers, all with an eye toward achieving NATO standards. Current force levels are approximately 225,000 (plus 90,000 civilian workers in the Ministry of Defense). The Ministry of Defense plans to continue force reductions by approximately 20,000 personnel per year to reach a final end state of 143,000 by 2011. Ukraine's stated national policy is Euro-Atlantic integration, including with both NATO and the European Union. NATO offered Ukraine an "Intensified Dialogue on Membership Issues" in April 2005. Ukraine had previously signed an agreement with NATO on using Ukraine's strategic airlift capabilities and has been an active participant in Partnership for Peace exercises, in Balkans peacekeeping, and Coalition operations in Iraq. Ukrainian units have been serving in the U.S. sector in Kosovo, and served in the Polish-led division in Iraq. Currently, Ukraine participates in six United Nations peacekeeping missions and has up to 50 troops serving in supporting roles in Iraq.
    
==Foreign Relations==
 
==Foreign Relations==
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The government has declared Euro-Atlantic integration to be its primary foreign policy objective and has sought to maintain good relations with Russia. The European Union’s Partnership and Cooperation Agreement (PCA) with Ukraine went into force on March 1, 1998. After the 2004 round of EU expansion, the EU did not signal a willingness to consider Ukraine for an association agreement, as Ukraine had hoped for, but instead included it in a new "neighbor" policy, disappointing many Ukrainians. An agreement on intensified cooperation is possible after Ukrainian WTO accession. On January 31, 1992, Ukraine joined the then-Conference on Security and Cooperation in Europe (now the Organization for Security and Cooperation in Europe—OSCE), and on March 10, 1992, it became a member of the North Atlantic Cooperation Council. Ukraine signed a Charter Agreement with NATO in 1997, sent troops to Kosovo in close cooperation with NATO countries, signed an agreement for NATO use of Ukrainian strategic airlift assets, and has declared interest in eventual membership. It is the most active member of the Partnership for Peace (PfP). In April 2005, NATO offered an "Intensified Dialogue on Membership Issues" to Ukraine.  
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The government has declared Euro-Atlantic integration to be its primary foreign policy objective and has sought to maintain good relations with Russia. The European Union's Partnership and Cooperation Agreement (PCA) with Ukraine went into force on March 1, 1998. After the 2004 round of EU expansion, the EU did not signal a willingness to consider Ukraine for an association agreement, as Ukraine had hoped for, but instead included it in a new "neighbor" policy, disappointing many Ukrainians. An agreement on intensified cooperation is possible after Ukrainian WTO accession. On January 31, 1992, Ukraine joined the then-Conference on Security and Cooperation in Europe (now the Organization for Security and Cooperation in Europe—OSCE), and on March 10, 1992, it became a member of the North Atlantic Cooperation Council. Ukraine signed a Charter Agreement with NATO in 1997, sent troops to Kosovo in close cooperation with NATO countries, signed an agreement for NATO use of Ukrainian strategic airlift assets, and has declared interest in eventual membership. It is the most active member of the Partnership for Peace (PfP). In April 2005, NATO offered an "Intensified Dialogue on Membership Issues" to Ukraine.  
    
Ukraine maintains peaceful and constructive relations with all its neighbors, though there are some unresolved maritime issues along the Danube and in the Black Sea with Romania; it has especially close ties with Poland and Russia. Relations with Russia are complicated by differing foreign policy priorities in the region, energy dependence, payment arrears, disagreement over compliance with the 1997 agreement on the stationing of the Russian Black Sea Fleet in Sevastopol, and a dispute over bilateral boundaries in the Sea of Azov and the Kerch Strait. Ukraine co-founded the Commonwealth of Independent States (CIS) on December 8, 1991, but in January 1993 it refused to endorse a draft charter strengthening political, economic, and defense ties among CIS members. Ukraine was a founding member of GUAM (Georgia-Ukraine-Azerbaijan-Moldova) and has taken the lead with Georgia to promote cooperation among emerging democracies in the Community for Democratic Choice, which held its first summit meeting December 1–2, 2005 in Kyiv.  
 
Ukraine maintains peaceful and constructive relations with all its neighbors, though there are some unresolved maritime issues along the Danube and in the Black Sea with Romania; it has especially close ties with Poland and Russia. Relations with Russia are complicated by differing foreign policy priorities in the region, energy dependence, payment arrears, disagreement over compliance with the 1997 agreement on the stationing of the Russian Black Sea Fleet in Sevastopol, and a dispute over bilateral boundaries in the Sea of Azov and the Kerch Strait. Ukraine co-founded the Commonwealth of Independent States (CIS) on December 8, 1991, but in January 1993 it refused to endorse a draft charter strengthening political, economic, and defense ties among CIS members. Ukraine was a founding member of GUAM (Georgia-Ukraine-Azerbaijan-Moldova) and has taken the lead with Georgia to promote cooperation among emerging democracies in the Community for Democratic Choice, which held its first summit meeting December 1–2, 2005 in Kyiv.  
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Ukraine encourages foreign trade and investment. The foreign investment law allows Westerners to purchase businesses and property, to repatriate revenue and profits, and to receive compensation in the event that property were to be nationalized by a future government. However, complex laws and regulations, poor corporate governance, weak enforcement of contract law by courts and particularly corruption have discouraged broad foreign direct investment in Ukraine. While there is a functioning stock market, the lack of protection for minority shareholder rights severely restricts portfolio investment activities. Total foreign direct investment in Ukraine was approximately $21.2 billion as of January 1, 2007. At $447 per capita, this was one of the lowest figures in the region.  
 
Ukraine encourages foreign trade and investment. The foreign investment law allows Westerners to purchase businesses and property, to repatriate revenue and profits, and to receive compensation in the event that property were to be nationalized by a future government. However, complex laws and regulations, poor corporate governance, weak enforcement of contract law by courts and particularly corruption have discouraged broad foreign direct investment in Ukraine. While there is a functioning stock market, the lack of protection for minority shareholder rights severely restricts portfolio investment activities. Total foreign direct investment in Ukraine was approximately $21.2 billion as of January 1, 2007. At $447 per capita, this was one of the lowest figures in the region.  
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While countries of the former Soviet Union remain important trading partners, especially Russia and Turkmenistan for energy imports, Ukraine’s trade is becoming more diversified. Europe is now the destination of over one third of Ukraine's exports, while around one quarter of Ukraine's exports go to Russia and the CIS. Exports of machinery and machine tools are on the rise relative to steel, which constitutes over 30% of exports. Ukraine imports over 80% of its oil and 73% of its natural gas. Russia ranks as Ukraine's principal supplier of oil and Russian firms now own and/or operate the majority of Ukraine's refining capacity. Natural gas imports come from Russia and Turkmenistan, which deliver the gas through a pipeline system owned and controlled by Gazprom, Russia's state-owned gas monopoly. In 2005 and 2006, Ukraine switched from barter to cash payments for gas imports. Ukraine controls the gas pipelines on its territory that are also used to transit Russian gas to Western Europe. The complex relationship between supplier, transporter, and consumer has led to some tensions, including Russia's decision to cut off gas supplies for three days in January 2006.  
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While countries of the former Soviet Union remain important trading partners, especially Russia and Turkmenistan for energy imports, Ukraine's trade is becoming more diversified. Europe is now the destination of over one third of Ukraine's exports, while around one quarter of Ukraine's exports go to Russia and the CIS. Exports of machinery and machine tools are on the rise relative to steel, which constitutes over 30% of exports. Ukraine imports over 80% of its oil and 73% of its natural gas. Russia ranks as Ukraine's principal supplier of oil and Russian firms now own and/or operate the majority of Ukraine's refining capacity. Natural gas imports come from Russia and Turkmenistan, which deliver the gas through a pipeline system owned and controlled by Gazprom, Russia's state-owned gas monopoly. In 2005 and 2006, Ukraine switched from barter to cash payments for gas imports. Ukraine controls the gas pipelines on its territory that are also used to transit Russian gas to Western Europe. The complex relationship between supplier, transporter, and consumer has led to some tensions, including Russia's decision to cut off gas supplies for three days in January 2006.  
    
The Government of Ukraine's 12-month $605 million precautionary standby agreement with the International Monetary Fund (IMF) expired in March 2005, and Ukraine currently does not receive IMF financing. In Article IV Consultations, the IMF recommends fiscal discipline and structural reforms, particularly of Ukraine's pension system. In July 2005, the World Bank approved a $250 million Development Policy Loan (formerly a Programmatic Adjustment Loan) to support reforms to improve the investment climate, public administration and financial management, and social inclusion. European Bank for Reconstruction and Development (EBRD) project outlays more than doubled in 2005 to 530 million Euros, bringing its portfolio to 2.2 billion Euros.
 
The Government of Ukraine's 12-month $605 million precautionary standby agreement with the International Monetary Fund (IMF) expired in March 2005, and Ukraine currently does not receive IMF financing. In Article IV Consultations, the IMF recommends fiscal discipline and structural reforms, particularly of Ukraine's pension system. In July 2005, the World Bank approved a $250 million Development Policy Loan (formerly a Programmatic Adjustment Loan) to support reforms to improve the investment climate, public administration and financial management, and social inclusion. European Bank for Reconstruction and Development (EBRD) project outlays more than doubled in 2005 to 530 million Euros, bringing its portfolio to 2.2 billion Euros.
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