The interconnected issues of Crimea, Sevastopol, and the Black Sea Fleet not only constituted Ukraine’s thorniest postindependence problem but also posed a significant threat to peace in the region. In 1954 the Russian S.F.S.R. had transferred the administration of Crimea to the Ukrainian S.S.R. However, it was the one region of Ukraine where ethnic Russians constituted a majority of the population. In 1991 Crimea was granted the status of an autonomous republic, and Crimeans supported the vote for Ukrainian independence (albeit by a small majority). But disenchantment with an independent Ukraine soon followed, and a movement for greater autonomy or even secession developed in the peninsula. The separatists were encouraged in their efforts by routine pronouncements by prominent Russian politicians and the Russian Duma that Crimea was Russian territory that never should have been part of Ukraine. The situation was complicated by the arrival of about 250,000 Crimean Tatars in the peninsula—returning to the historic homeland from which they had been deported at the end of World War II—starting in the late 1980s.
Tensions in the region increased in 1994: separatist leader Yury Meshkov was elected Crimean president in January, and a referendum calling for sovereignty was passed two months later. Meshkov proved to be an inept leader, however, and he quickly alienated his own supporters. By September he and the Crimean parliament were locked in a constitutional struggle. The parliament finally stripped Meshkov of his powers and elected a pro-Kiev prime minister. In March 1995 Ukraine abolished the post of Crimean president and instituted direct political rule, though it granted Crimea significant economic concessions. The Crimean separatist movement collapsed.
The dispute between Russia and Ukraine over control of the Black Sea Fleet and Sevastopol, the Crimean port city where the fleet was based, was particularly acrimonious. Early in 1992 Ukraine laid claim to the entire fleet, which had been an important naval asset of the Soviet Union. Russia responded unequivocally that the fleet always had been and would remain Russia’s. A “war of decrees” over the issue continued until June 1992, when Kravchuk and Russian Pres. Boris Yeltsin agreed that the fleet would be administered jointly for a three-year period. Subsequently an agreement was reached to divide the fleet’s assets evenly, but after further negotiation Ukraine consented to allow Russia to acquire a majority share of the fleet in exchange for debt forgiveness. The question of basing rights was not resolved until a final agreement on the Black Sea Fleet was reached in 1997. It allowed Russia to lease the main port facilities of Sevastopol for 20 years. Shortly afterward, Ukraine and Russia signed the Treaty of Friendship, Cooperation, and Partnership (1997), which recognized Ukraine’s territorial sovereignty and existing borders (including Crimea) and regularized relations to some degree.
The turbulent relations between Ukraine and Russia in the post-Soviet period were likely inevitable, given that the independence of Ukraine was such a sudden, fundamental change. Russia had tremendous difficulty in perceiving—let alone accepting—Ukraine as an independent country: it viewed Ukraine as an integral part of the Russian realm and even considered Ukrainians to be virtually the same people as Russians. Consequently, Russia reacted to Ukraine’s departure more strongly than it did to the separation of the other Soviet republics. On the other hand, Ukraine was intensely aware of the fragility of its recent independence and extremely sensitive to any perceived encroachment on its sovereignty by Russia. Relations between the two countries continued to be volatile into the early 21st century. Ukraine’s dependence on Russia for fossil fuels was an issue of particular concern. For example, in 2006 Russia temporarily cut off its supply of natural gas to Ukraine after claiming that Ukraine had not paid its bills. Ukraine, however, maintained that the move was a reprisal for its pro-Western policies.
Ukraine’s relations with its other neighbours tended to be much more cordial. Relations with Hungary were from the outset friendly. Poland was supportive of Ukrainian independence as well, notwithstanding earlier centuries of acrimony. Ukraine also fostered a working relationship with several countries of the former Soviet Union by cofounding a loose subregional organization called GUAM (Georgia, Ukraine, Azerbaijan, Moldova; known as GUUAM from 1999 to 2005, when Uzbekistan was a member). Relations with Romania were complicated by that country’s claims to certain Ukrainian territories, including northern Bukovina and southern Bessarabia, as well as Zmiyinyy (Serpent) Island and its surrounding waters in the Black Sea. Belarus’s authoritarian political system and its proposed two-state union with Russia rendered close ties with Ukraine unlikely.
Ukraine’s relations with the United States started out very poorly. During a visit to Ukraine in the summer of 1991, U.S. Pres. George Bush affronted many Ukrainians when he warned them against “suicidal” nationalism and urged them to remain within the U.S.S.R. When Ukraine gained independence later that year, Washington was extremely concerned about the new country’s large nuclear arsenal. Only after the resolution of the disarmament issue did significant ties begin to develop. Ukraine soon ranked as a major recipient of U.S. foreign assistance, and the two countries developed a strong political relationship.
Economic difficulties
Ukraine’s postindependence economic performance—in sharp contrast to its relatively successful efforts at state building and diplomacy—was markedly poor. The social dislocation brought about by economic “shock therapy” in Russia dampened the Ukrainian government’s desire for rapid change; it opted instead for a gradualist approach toward achieving a mixed economy. Economic decline followed, since Ukrainian industry was already suffering from the disruption of trade with former Soviet republics in the wake of the U.S.S.R.’s demise. Ukraine’s heavy dependence on foreign energy sources also strained the economy, particularly because Russia, Ukraine’s main supplier, moved to raise the previously subsidized price of fossil fuels to world levels. As a solid monetary policy had not been established, Ukraine experienced hyperinflation, which reached a rate of at least 4,735 percent in 1993. Meanwhile, corruption increased as political insiders grabbed state assets for themselves or took unfair advantage of low-interest loans available to industry and agriculture. A sustained attempt at economic reform came with the appointment of Leonid Kuchma as prime minister in October 1992. His efforts, however, were strongly opposed by a majority of parliamentarians and, to a degree, undermined by President Kravchuk himself. An exasperated Kuchma resigned in 1993.
Social developments
Postindependence society in Ukraine saw some positive developments. The media became much more open and vibrant, although those who were too openly critical of the administration were subject to harassment, notably during Kuchma’s presidency (1994–2005). Previous constraints on academic and intellectual life were lifted, resulting in a growing and diverse body of publications, and liberal arts and business schools began to emerge. There was substantial development in religious life, as the Ukrainian Orthodox and Ukrainian Catholic churches—as well as other denominations—were able to operate freely. In addition, a new generation of youth began to grow up without the ideological and intellectual constraints of Soviet society.