Ukraine was the center of the first eastern Slavic state, Kyivan Rus, which during the 10th and 11th centuries was the largest and most powerful state in Europe. Weakened by internecine quarrels and Mongol invasions, Kyivan Rus was incorporated into the Grand Duchy of Lithuania and eventually into the Polish-Lithuanian Commonwealth. The cultural and religious legacy of Kyivan Rus laid the foundation for Ukrainian nationalism through subsequent centuries. A new Ukrainian state, the Cossack Hetmanate, was established during the mid-17th century after an uprising against the Poles. Despite continuous Muscovite pressure, the Hetmanate managed to remain autonomous for well over 100 years. During the latter part of the 18th century, most Ukrainian ethnographic territory was absorbed by the Russian Empire. Following the collapse of czarist Russia in 1917, Ukraine achieved a short-lived period of independence (1917-20), but was reconquered and endured a brutal Soviet rule that engineered two forced famines (1921-22 and 1932-33) in which over 8 million died. In World War II, German and Soviet armies were responsible for 7 to 8 million more deaths. Although Ukraine achieved independence in 1991 with the dissolution of the USSR, democracy and prosperity remained elusive as the legacy of state control and endemic corruption stalled efforts at economic reform, privatization, and civil liberties.A peaceful mass protest referred to as the "Orange Revolution" in the closing months of 2004 forced the authorities to overturn a rigged presidential election and to allow a new internationally monitored vote that swept into power a reformist slate under Viktor YUSHCHENKO. Subsequent internal squabbles in the YUSHCHENKO camp allowed his rival Viktor YANUKOVYCH to stage a comeback in parliamentary (Rada) elections, become prime minister in August 2006, and be elected president in February 2010. In October 2012, Ukraine held Rada elections, widely criticized by Western observers as flawed due to use of government resources to favor ruling party candidates, interference with media access, and harassment of opposition candidates. President YANUKOVYCH's backtracking on a trade and cooperation agreement with the EU in November 2013 - in favor of closer economic ties with Russia - and subsequent use of force against students, civil society activists, and other civilians in favor of the agreement led to a three-month protest occupation of Kyiv's central square. The government's use of violence to break up the protest camp in February 2014 led to all out pitched battles, scores of deaths, international condemnation, and the president's abrupt departure for Russia. New elections in the spring allowed pro-West president Petro POROSHENKO to assume office on 7 June 2014.Shortly after YANUKOVYCH's departure in late February 2014, Russian President PUTIN ordered the invasion of Ukraine's Crimean Peninsula claiming the action was to protect ethnic Russians living there. Two weeks later, a "referendum" was held regarding the integration of Crimea into the Russian Federation. The "referendum" was condemned as illegitimate by the Ukrainian Government, the EU, the US, and the UN General Assembly (UNGA). In response to Russia's purported annexation of Crimea, 100 members of the UN passed UNGA resolution 68/262, rejecting the "referendum" as baseless and invalid and confiming the sovereignty, political independence, unity, and territorial integrity of Ukraine. Russia also continues to supply separatists in two of Ukraine's eastern provinces with manpower, funding, and materiel resulting in an armed conflict with the Ukrainian Government. Representatives from Ukraine, Russia, and the unrecognized separatist republics signed the Minsk Protocol and Memorandum in September 2014 to end the conflict. However, this agreement failed to stop the fighting. In a renewed attempt to alleviate ongoing clashes, leaders of Ukraine, Russia, France, and Germany negotiated a follow-on package of measures in February 2015 to implement the Minsk Agreements. Representatives from Ukraine, Russia, and the Organization for Security and Cooperation in Europe also meet regularly to facilitate implementation of the peace deal. More than 33,000 civilians have been killed or wounded in the fighting resulting from Russian aggression in eastern Ukraine.
After Russia, the Ukrainian Republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied unique equipment, such as, large diameter pipes and vertical drilling apparatus, and raw materials to industrial and mining sites in other regions of the former USSR.Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Outside institutions - particularly the IMF encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy. From 2000 until mid-2008, Ukraine's economy was buoyant despite political turmoil between the prime minister and president. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea.Ukraine’s oligarch-dominated economy grew slowly from 2010 to 2013. After former President YANUKOVYCH fled the country during the Revolution of Dignity, the international community began efforts to stabilize the Ukrainian economy, including a March 2014 IMF assistance package of $17.5 billion, of which Ukraine has received four disbursements, most recently in April 2017, bringing the total disbursed as of that date to approximately $8.4 billion. Ukraine has made significant progress on reforms designed to make the country prosperous, democratic, and transparent. But more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework.Russia’s occupation of Crimea in March 2014 and ongoing aggression in eastern Ukraine have hurt economic growth. With the loss of a major portion of Ukraine’s heavy industry in Donbas and ongoing violence, Ukraine’s economy contracted by 6.6% in 2014 and by 14.3% in 2015, but grew by 2.3% in 2016 as key reforms took hold. After the EU and Ukraine enacted the Deep and Comprehensive Free Trade Area and Russia imposed a series of trade restrictions, the EU replaced Russia as Ukraine’s largest trading partner. Analysts predict approximately 2% growth in 2017, but a new prohibition on commercial trade with separatist-controlled territories will have an uncertain effect on Ukraine’s key industrial sectors.