Following over one year in power of President Yanukovych’s team Ukraine has found itself at a critical juncture.  This concerns both country’s internal development, and its relations with the outer world.

A number of long-awaited and necessary reforms have been introduced. However, their content and the process of implementation have not been always consistent with the goals declared at their inception. Moreover, the growing rejection by the majority of the population of the current political establishment – both of those in power, and in opposition – has been seriously hindering reform efforts by considerably narrowing the base of their support.

In spite of the steady improvement of the macro-economic indicators, recovery of the Ukrainian economy remains rather uneven and fragile. This situation has been primarily caused by the lack of deep, structural changes, its overdependence on a limited number of export and commodity oriented industries. Business and investment environment remains tough and over-regulated, notwithstanding some steps in the right direction made by the government, considerably complicating local business initiatives and foreign investment. Corruption continues to impact economy and society at large in the most pervasive way, especially as a number of its roots causes are not being addressed in a consistent and comprehensive manner.

There is a growing concern about the rollback of the democratic achievements of the previous period affecting many aspects of political life, human rights and fundamental freedoms. Recent reform of the court system has failed to produce efficient and truly independent judiciary. A number of provisions of the draft election law raise serious doubts.

In foreign policy, after a series of initial blunders (“pressure-cook normalization” of relations with Russia, including Kharkiv accords, “non-bloc” status etc.) the President and his team seem to have genuinely focused on the steps leading to Ukraine’s integration into the European Union. Though their zealousness in the European direction has been substantially stimulated by the Russia’s growing appetites and intransigence, political decision in favour of the conclusion of negotiations on DCFTA and Association Agreement with EU in general could finalize the pro-European choice of Ukraine leading to its integration into the EU economy and bringing the country to EU in all other aspects.

With all drawbacks and deficiencies of the current state of affairs in Ukraine in view, European Union and the West shouldn’t miss the opportunity to anchor this country firmly in the family of the nations sharing common democratic values that is provided by the Association Agreement. Ukraine is still a functioning, though much imperfect democracy, its geo-political importance is quite obvious, particularly as reset with Russia has been showing its limitations, its economy has a potential to contribute to the competitiveness of market economies with agriculture capable to satisfy a large part of the growing world demand for food: all this makes Ukraine too important to be allowed to linger in the “grey zone” outside the West. Due implementation of the Association Agreement can become a major factor stimulating genuine reforms and radical changes in Ukrainian society.

The proposed project will try to achieve two major goals: (1) provide sound and timely analysis of the socio-economic and political processes taking place in the country in the run-up to the parliamentary election of 2012 measuring them up to the goal of achieving the full-fledged membership in the European Union in conjunction with the appraisal of external factors affecting realization of Ukraine’s pro-European policies. This will serve as a basis for recommendations as to what should be done ensure Ukraine’s integration into the European economy and institutions. (2) Continue creation of a platform within Ukraine for a professional discussion of the issues of the European integration of Ukraine. Special attention will be paid to the finalization of the Association Agreement and the challenges related to its implementation, as well as its internal and foreign policy implications.

Work on the project will be carried out and coordinated by Amb. Oleh Shamshur, GMF’s Non-Resident Fellow, as well as Valeriy Chaliy, deputy Director-General of the Rasumkov Center Dr.Mykola Kapitonenko, Executive Director of the Center for International Studies who will work with a group of the leading Ukrainian experts: Ihor Burakivsky, Director of the Institute of International Economic Studies, , Olexiy Haran, Professor at the Kyiv Mohyla Academy, Mykola Kapitonenko, Director of the Center for International Studies, Volodymyr Manjola, Head of the Chair of the History of International Relations at the Kyiv Institute of International Relations, Olexandre Sushko, Dirtector of the Institute of Euro-Atlantic Cooperation and Olexandre Todiychuk, President of the Kyiv Energy Club.