The Ukrainian parliament passed a declaration of sovereignty in July, 1990, and in Aug., 1991, declared Ukraine independent of the Soviet Union. Ukraine became a charter member of the Commonwealth of Independent States (CIS) in Dec., 1991. Leonid Kravchuk, a former Communist turned nationalist, became Ukraine's first president. Parliamentary and presidential elections were held in 1994, and Kravchuk was defeated by Prime Minister Leonid Kuchma.
Since his election, Kuchma has implemented a few market reforms, but the economy remains dominated by huge, inefficient state-run companies and has not improved significantly. Ukraine, briefly the world's third largest nuclear power, also ratified the Strategic Arms Reduction Treaty and the Nuclear Nonproliferation Treaty (1994) and turned its nuclear arsenal over to Russia for destruction (completed 1996); in return, Ukraine received much-needed fuel for its nuclear power plants. The country's economic reforms and cooperation in disarmament helped it gain substantial Western aid and loans.
Tensions continued over the Crimean peninsula, a former Russian territory with a majority Russian population that was ceded to Ukraine in 1954. In 1995, after Crimea challenged the Ukrainian government's sovereignty and threatened to secede, Ukraine placed Crimea's government under national control; its regional assembly, however, was retained. Another contentious issue was the division between Russia and Ukraine of the former Soviet Black Sea fleet, based in the Crimean port of Sevastopol. A basic agreement, under which four fifths of the fleet would fall under Russian control, was reached in 1995, and in 1997 it was agreed that Russia would be allowed to base its fleet at Sevastopol for 20 years.
Communists won the most seats in the 1998 legislative elections. Kuchma was reelected in 1999 after defeating the Communist candidate, Petro Symonenko, in a runoff, and in December Viktor Yushchenko, the central bank chairman and an advocate of market reforms, was chosen as prime minister. In Apr., 2000, voters in a referendum approved constitutional changes that increased the president's powers over parliament.
In Sept., 2000, a muckraking opposition journalist was murdered. When tape recordings implicating Kuchma in his murder and other abuses of power subsequently were aired, Kuchma's support in parliament eroded, and there were demonstrations in early 2001 calling for his resignation. The government refused to investigate the journalist's death and was accused of suppressing press coverage of the incident. The dismissal of Prime Minister Yushchenko in Apr., 2001, by parliament was a blow to reformers; he was succeeded by Anatoliy Kinakh, an ally of President Kuchma. In the Mar., 2002, parliamentary elections Yushchenko supporters won roughly a quarter of the seats, as did supporters of the president. In November, Kuchma dismissed Kinakh as prime minister and appointed Viktor Yanukovych to the post.
Ukraine and Russia signed a treaty in Jan., 2003, that defined their common borders everywhere except in the Sea of Azov. In September, Russia began building a sea dike toward Ukraine's Tuzla island in the Kerch Strait (which provides access to the sea), provoking a crisis; a subsequent accord allowed for joint use of the strait, declared Azov an internal body of water, and called for the delimiting of the Russian-Ukrainian border. Also in September, Ukraine, Belarus, Kazakhstan, and Russia signed an agreement to create a common economic space.
In Dec., 2003, the Ukrainian supreme court ruled that Kuchma could run for a third term because the election for his first term had occurred before the current constitution took effect. The parliament also approved a constitutional change allowing it, rather than the voters, to elect the president, but opposition and international protests led the legislators to reverse their decision two months later.
The 2004 presidential election appeared to mark a significant turning point for Ukraine, and led to the events known as the “Orange Revolution.” The government candidate, Prime Minister Yanukovych, advocated close ties with Russia (and his candidacy was supported by Russian president Putin) while the opposition candidate, former Prime Minister Yushchenko, called for closer ties with the European Union and benefited from increased disillusionment with Kuchma. The October vote resulted in a narrow victory for Yushchenko, who had been poisoned by an unknown assailant during the campaign, but he failed to win a majority, forcing a runoff with Yanukovych. The November balloting was declared a victory for Yanukovych, but both it and the first round were denounced by most observers, who accused the government of holding an undemocratic election. Yushchenko's supporters mounted protests in the streets of Kiev and other W Ukraine cities, where his support was strong. Yushchenko also challenged the results in court. Meanwhile, Yanukovych and his supporters, who were more concentrated in the more heavily Russian east, denounced these moves, and the situation threatened to split Ukraine. Parliament narrowly declared the results invalid, an act with no legal significance, but in December the supreme court annulled the vote due to fraud and called for the runoff to be rerun.
In late December a new vote resulted in a solid margin of victory for Yushchenko, but the result was not finalized until mid-Jan., 2005, because of legal challenges mounted by Yanukovych. In February Yushchenko appointed Yuliya V. Tymoshenko, an outspoken political ally, as prime minister. Seven months later, however, Yushchenko dismissed Tymoshenko's government after conflicts between the cabinet and the presidency and accusations that the president tolerated corruption. The moderate economist Yuriy Yekhanurov succeeded Tymoshenko, but only after the president secured the support of Yanukovych's party by making concessions on investigations into electoral fraud in 2004 presidential election.