Recent Developments. Confused and demoralized by the failure of the abortive coup of August 1991, in which Communist hard-liners tried to take over the government

Confused and demoralized by the failure of the abortive coup of August 1991, in which Communist hard-liners tried to take over the government, the Communists of Ukraine gave in and joined the nationalists in proclaiming Ukraine's independence on August 24. The legislature's declaration was confirmed by more than 90 percent of the electorate in a nationwide referendum in December. At the same time, Leonid Kravchuk was elected as the country's first president.

The euphoria over independence soon faded in the face of mounting problems. In foreign policy, the most serious problem was Ukraine's relations with Russia. The Russian legislature raised questions about the inclusion of Crimea-where ethnic Russians are in the majority and where the Black Sea Fleet was stationed-in the new Ukrainian state. An active, vocal pro-Russian separatist movement in Crimea added to the tensions. The autonomous government there voted in February 1992 to create an independent Crimean republic, but rescinded the declaration of independence two weeks later. The United States, for its part, was uneasy about Ukraine retaining possession of the world's third largest nuclear arsenal, which it had inherited when the Soviet Union dissolved. Internally, tensions arose between the more nationalistic west and the Sovietized east. Above all else, the rapid deterioration of the economy was the most pressing concern. The collapse of the Soviet Union accelerated the decline of an already seriously faltering economy. President Kravchuk was slow in launching market-oriented reforms, and the growing confrontation between the opposing political parties in the legislature further complicated the situation.

Despite the deteriorating economy, there were some political successes. The presidential elections of 1994 were conducted calmly and fairly, leading to a peaceful transfer of power to the new president, Leonid Kuchma, whose priority was economic reform. But parliamentary infighting and the lack of a post-Soviet constitution delineating the powers of the executive and legislative branches produced a political stalemate. In January 1994 Ukraine became one of the first countries in the world to begin unilaterally eliminating its nuclear arsenal, thereby greatly improving its relationship with the United States. It also entered NATO's Partnership for Peace program, formed in 1993 to offer former Warsaw Pact members limited associations with NATO. In October 1995 it was accepted into the Council of Europe, an advisory council that works to coordinate the activities of European nations. Undoubtedly, Ukraine's most important achievement since gaining independence was the adoption, on June 28, 1996, of a new, democratic constitution. This success was buttressed by the smooth introduction, in August, of a new unit of currency, the hryvnia, which held strong into 1997. In addition, Kuchma succeeded in persuading most of the political leaders in Crimea to accept the idea of autonomy within Ukraine.

Nevertheless, political problems abounded. In May 1996 Kuchma replaced his prime minister, Evhen Marchuk, with Pavlo Lazarenko, a rich, influential businessman from Dnipropetrovs'k, a region from where the new president himself and many top government officials came. In July an attempt was made to assassinate the new prime minister. Many viewed it as a reflection of the power struggles between powerful clans of politicians and businessmen from Dnipropetrovs'k and those from Donets'k. Such regional loyalties and conflicts, accompanied by extensive corruption, began to play an increasing role in the politics of Ukraine.

Meanwhile, complications arose in the highly sensitive dispute between Ukraine and Russia over the unresolved issue of the Black Sea Fleet, stationed in the Crimean port of Sevastopol'. Originally the conflict was how to divide the fleet's roughly 800 poorly maintained ships.

Although Russia and Ukraine tentatively agreed to divide the fleet, negotiations then focused on who should control Sevastopol'. Russia wanted control indefinitely, while Ukraine was willing to offer a long-term lease. In December 1996 the Russian Council of the Federation, the upper house of the Russian legislature, declared that Sevastopol' was a Russian city and that it should belong to Russia. This was a territorial demand that challenged the integrity of Ukraine's borders. Although the Russian government, including the foreign ministry, did not formally support the statement, the Ukrainian legislature responded by calling for the removal of all foreign, or Russian, troops from Ukrainian territory. In late May 1997, however, the prime ministers of Russia and Ukraine reached an agreement to settle the dispute. According to the terms of the accord, Russia purchased 80 percent of the fleet from Ukraine and is guaranteed a 20-year lease for its use ofthe port at Sevastopol'. The two countries are to keep their separate navies at different bays in the port. Shortly after the accord was reached, the two governments signed a treaty of friendship and cooperation.

In June 1997 President Kuchma fired prime minister Lazarenko, who had drawn widespread criticism for the slow pace of economic reform during his brief tenure. The president appointed Valery Pustovoitenko to succeed Lazarenko in July. In parliamentary elections in March 1998, the Communists won the largest percentage of the vote; however, they still held less than 25 percent of the seats in a parliament dominated by independents. In September 1998, less than a month after Russia's economic collapse, Ukraine's currency, the hryvnia, fell significantly in value, and the country's economy continued to slump through early 1999. The government put limits on the money supply so that Ukraine could receive loans from the International Monetary Fund (IMF) and the European Union (ED). In February 1999 the upper house of Russia's legislature finally ratified the treaty of friendship and cooperation the two countries had signed in 1997. The Russian parliament had delayed accepting the treaty, which formally established Ukraine's sovereignty over the Crimean Peninsula. Kuchma was elected to a second term as president in November 1999.

GOVERNMENT

Although the collapse of the Soviet Union in 1991 brought Ukraine independence, the rigidly centralized Soviet structure of government remained. The first five years were a tumultuous time of trying to establish democratic institutions and traditions. Ukraine's first direct presidential election was held in 1991. In 1994 an early presidential election took place, as well as elections to the legislature. Ukraine was the last of the former Soviet republics to adopt a new constitution. The delay was caused by a struggle in the legislature between reformers, who wanted to introduce a new, democratic system of government, and conservatives, who wanted to preserve the structures of the former Soviet state. The reformers finally triumphed in June 1996 when the legislature adopted a new constitution that stipulated a parliamentary democracy. All citizens aged 18 and over are eligible to vote.

A Executive

Under the 1996 constitution, the president is head of state. The president is elected by direct, majority vote for a term of five years and may serve no more than two consecutive terms. The president appoints the prime minister and, under the advice of the prime minister, also appoints the Cabinet of Ministers. These appointments are subject to confirmation by the legislature. The prime minister is head of government and is responsible for carrying out its policies.

B Legislature

The parliament (Verkhovna Rada, or Supreme Council) consists of a single chamber of 450 deputies elected for four-year terms. The inability of some candidates to win absolute majorities in their constituencies has left a number of these seats unfilled. Among its prerogatives, the legislature has the right to change the constitution, pass laws, confirm the budget, and impeach the president.

C Judiciary

The highest court is the Constitutional Court, which is charged with protecting and interpreting the constitution. The president, the legislature, and a conference of judges each appoint six of the court's 18 members. The Supreme Court is the highest appeals court for nonconstitutional issues. A Supreme Judiciary Council, consisting of 20 members, recommends judiciary appointments and deals with the removal of judges.

D Local Government

Although Ukraine is a unitary state, its constitution allows for a considerable degree of decentralization. The country is divided into 24 oblasts (regions) and one autonomous republic, Crimea. The cities of Kyiv and Sevastopol' have special status; their governments, which operate independently of oblast authority, are responsible only to the central government in Kyiv. Local councils and executive bodies, elected every four years, are responsible for their jurisdiction's taxes, budgets, schools, roads, utilities, and public health. The Crime an Autonomous Republic enjoys far-ranging autonomy within Ukraine, including its own constitution, legislature, and Cabinet of Ministers. The latter controls Crimea's government and economy, but is restricted from implementing policies that would contradict the constitution of Ukraine.

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