Political situation

In a nationwide referendum held on 1 December 1991, the Ukrainian people overwhelmingly affirmed their desire for independence. This marked the beginning of democratic transformations in the country. The newly-elected Ukrainian government set out the policy guidelines for its administration. These included the establishment of a democratic system of government, the guarantee of the welfare, fundamental rights and freedoms of the population, and the promotion of a socially oriented economy. However, the political situation in Ukraine remained tense during the first years of independence.

On 28 June 1996, the Ukrainian Parliament ratified the Constitution of Ukraine. The Constitution defines Ukraine as a sovereign, independent, democratic, social, and legal state, wherein the individual is recognised as the supreme social value.

The Constitution of Ukraine declares that sovereignty and power emanate from the people of Ukraine. They exercise authority both directly and through government authorities and local self-government bodies. The authorities comprise the legislative, executive and judicial branches, which operate within constitutional limits and in accordance with Ukrainian legislation. Local self-government is recognised and guaranteed throughout Ukraine.

In Ukraine, the rule of law is a fundamental principle of the legal system, with the Constitution of Ukraine as the supreme legal authority. All legislation must be consistent with the Constitution and comply with its provisions. The Constitution of Ukraine is a direct source of legal authority and guarantees the right to judicial protection of individual constitutional rights and freedoms.

Ukrainian society is based on the principles of political, economic and ideological diversity. No ideology may be prescribed by the state, and censorship is explicitly proscribed. The state ensures the freedom of political activity, provided that such activity does not contravene the Constitution or Ukrainian legislation.

Protecting Ukraine's sovereignty and territorial integrity, as well as ensuring economic and information security, are the primary tasks of the state. This concerns all Ukrainian citizens.

Since 2004, Ukraine has declared its course towards EU membership.  European integration processes induced a significant transformation of the institutional and legal framework.

The EU-Ukraine Association Agreement was first proposed in 2012. However, on 21 November 2013, under the presidency of the pro-Russian politician Viktor Yanukovych, the government halted preparations for its signing. As head of state, Yanukovych attended the EU summit in Vilnius on 28-29 November 2013, where the agreement was to be signed, but ultimately refused to do so. This refusal was a catalyst for the Euromaidan (Revolution of Dignity), which led to the ousting of Viktor Yanukovych and the government of Mykola Azarov.

In 2014, Ukraine signed the Association Agreement with the EU. Prime Minister Arseniy Yatsenyuk signed the political part on 21 March, while Ukraine's fifth president, Petro Poroshenko, signed the economic part on 27 June. The agreement thus obliged Ukraine to promote European cooperation, including in the fields of education, training and youth. The aim was to foster mutual understanding, strengthen intercultural dialogue and deepen knowledge of each other's cultures, while respecting cultural and linguistic diversity.

On 1 January 2016, Ukraine became a member of the Deep and Comprehensive Free Trade Area (DCFTA). Since 11 June 2017, Ukrainians have been granted visa-free access to the Schengen area for up to 90 days within a 180-day period. The Association Agreement officially entered into force on 1 September 2017.

On 21 February 2019, Ukraine amended its Constitution to reaffirm its strategic commitment to EU and NATO membership. Since then, Ukraine has been actively pursuing full integration and accession to the European Union. 

On 12 October 2021, Ukraine signed a Common Aviation Area Agreement with the EU. 

On 24 February 2022, Russia commenced a large-scale military intervention in Ukraine, which had a significant impact on the country's political and economic environment. Despite the military actions, Ukraine submitted an application for EU membership on 28 February 2022. The European Parliament, the European Commission and the European Council expressed their support for Ukraine's candidacy, resulting in its designation as an EU candidate country on 23 June 2022. Subsequently, on 14 December 2023, the Council of the European Union resolved to commence negotiations on Ukraine's accession to the EU. The First Intergovernmental Conference was held on 25 June 2024, thereby inaugurating the formal accession negotiations.

Economic situation

Ukraine has a mixed economy with diversified industry, agriculture, and services. 

From 2000 until the global financial and economic crisis of 2008, Ukraine experienced a period of rapid growth. The post-crisis recovery began in 2010 and growth continued until 2013, when Ukraine experienced a period of zero GDP growth.

The annexation of Crimea by Russia in early 2014 and the subsequent war in the Donbas caused considerable damage to the Ukrainian economy. The period between 2014 and 2015 saw a significant decline. In both 2014 and 2015, GDP fell by 6.8% and 12% respectively. Between 2016 and 2018, the Ukrainian economy grew rapidly, reaching almost 80% of its pre-crisis level in 2008. In April 2017, the World Bank reported that the Ukrainian economy grew by 2.3% in 2016, marking the end of the recession.

According to the World Bank, Ukraine's economic growth remained stable at 3.2% of GDP in 2019, largely due to a favourable harvest and domestic consumption-dependent sectors. However, in 2020, the country's GDP fell by 4.4% as a consequence of the COVID-19 pandemic. A gradual economic recovery commenced in 2021, with GDP rising by 3%.

As a result of Russia's large-scale invasion of Ukraine in 2022, the national economy suffered catastrophic losses. As reported by the Ministry of Economy of Ukraine, the country’s GDP declined by 29.2% in 2022. A considerable degree of damage was inflicted upon key industrial sectors, including metallurgy, agriculture and energy. From 2023 onwards, the Ukrainian economy commenced a process of reorientation and adaptation to the conditions of wartime. The current situation is characterised by the emergence of features associated with a wartime economy. Qualitative changes, manifested in structural shifts, are evident, as are quantitative changes, indicating that businesses are adapting to the martial law regime and moving towards a phase of recovery growth. In accordance with the data provided by the Government portal, the Ministry of Economy forecasts that GDP growth will reach 5% based on the results achieved in 2023.