Ukraine and Russia: Managing Interdependence

Abstract

This chapter explores the evolution of Ukraine’s relations with Russia between 1991 and 2011 as a means of understanding the nature and extent of Ukraine’s commitments to Russia’s regional plans and Russia’s approach in pursuing them. We demonstrate that Ukraine adopted and consistently implemented a strategy of highly limited participation in post-Soviet regional integration, perceiving it as Russia’s means of asserting its regional hegemony at the expense of Ukraine’s independence. Yet, at the same time Ukraine remained vulnerable to Russia’s pressure, having done little to reduce its economic and energy dependence on Russia. This interdependence was perpetuated by the rent-seeking strategies of oligarchic interests and the lack of comprehensive economic reform.