	Introduction

Ukraine's "Orange Revolution" has sparked a great deal of interest in Congress andelsewhere. Some hope that Ukraine may finally embark on a path of comprehensive reforms andEuro-Atlantic integration after nearly 15 years of half-measures and false starts. Others are interestedin the geopolitical implications of a pro-Western Ukraine in the former Soviet region and in relationsbetween Russia and the West. Some analysts detect a new wave of democracy sweeping thepost-Soviet region, from the "Rose Revolution" in Georgia in November 2003-January 2004, to the"Orange Revolution" in November 2004-January 2005, and possibly to the overthrow of the regimein Kyrgyzstan in March 2005. Hundreds of thousands of Ukrainians demonstrated against the fraud,in what came to be known as the "Orange Revolution," after Yushchenko's chosen campaign color. Ukraine's Priorities

President Yushchenko has set an ambitious set of domestic priorities for the new government.Yushchenko has said that his key domestic priorities include reducing the size of the unofficial,"shadow" economy, especially by reducing taxes and eliminating loopholes and exemptions forfavored businesses. Other priorities include improving the independence and effectiveness of the judiciary; andattracting foreign investment. (2) Yushchenko has vowed to prosecute those guilty of crimes,including fraud during the election, the 2000 murder of Ukrainian journalist Georgi Gongadze, andthe attempt on Yushchenko's own life. NATO and Ukraine formed a NATO-Ukraine Commission tofoster cooperation. Yushchenko calledRussia a permanent strategic partner of Ukraine, but insisted that he will subordinate participationin the Russian-led Single Economic Space (SES) and the Commonwealth of Independent States tohis goal of Euro-Atlantic integration. U.S. Policy

U.S. officials supported the "Orange Revolution" in Ukraine, warning the former regime ofnegative consequences if it engaged in fraud, sharply criticizing fraud in the November 21 runoffvote, and hailing Yushchenko's ultimate victory. The Administration also called for"immediately" ending the application of the Jackson-Vanik amendment to Ukraine. Current U.S. aid levels for Ukraine are relatively modest. As noted in the April 2005 Bush-Yushchenko joint statement, the United States will beinterested in seeing how the new government tackles such issues as weapons proliferation andhuman trafficking. After an April 4 meeting with President Yushchenko,President Bush said that Yushchenko was "fulfilling a campaign pledge. Administration officials have tried toavoid confrontation with Moscow on the issue, saying that the United States is only interested inpromoting democracy in the region and throughout the world. (9) 

	Congressional Response

During the Ukranian presidential election campaign and during the ensuing electoral crisis,the 108th Congress approved legislation calling for free and fair elections in Ukraine and urged theAdministration to warn Ukraine of possible negative consequences for Ukraine's leaders and forU.S.-Ukraine ties in the case of electoral fraud. The Jackson-Vanik amendment bars permanent normal trade relations (PNTR) status forcountries with non-market economies that do not permit freedom of emigration.
In January 2005, Viktor Yushchenko became Ukraine's new President, after massivedemonstrations helped to overturn the former regime's electoral fraud, in what has been dubbed the"Orange Revolution," after Yushchenko's campaign color. The "Orange Revolution" has sparkeda great deal of interest in Congress and elsewhere. Some hope that Ukraine may finally embark ona path of comprehensive reforms and Euro-Atlantic integration after nearly 15 years of half-measuresand false starts. Others are interested in the geopolitical implications of a pro-Western Ukraine inthe former Soviet region and in relations between Russia and the West. Some analysts detect a newwave of democracy sweeping the post-Soviet region.
Yushchenko has said that his key domestic priorities include reducing the size of theunofficial, "shadow" economy, maintaining macroeconomic stability, and fighting corruption, amajor problem in Ukraine. Other critical priorities include improving the independence andeffectiveness of the judiciary and attracting foreign investment. Yushchenko has vowed to prosecutethose guilty of crimes, including fraud during the election, the 2000 murder of Ukrainian journalistGeorgi Gongadze, and an attempt on Yushchenko's life during the campaign, which has left himdisfigured. In foreign policy, Ukraine seeks closer ties with the European Union, NATO, and theUnited States, with the goal of eventual NATO and EU membership. Yushchenko has said that heviews Russia as a "strategic partner" of Ukraine, but that integration with the West will supercedeRussian-led integration efforts.
The Bush Administration has hailed the "Orange Revolution" as a part of a wave ofdemocratization sweeping the region and the world, and has proposed a modest increase in U.S. aidto Ukraine. Experts believe that prompt U.S. and international assistance may be needed to help thenew government to boost public support before crucial March 2006 parliamentary elections. TheUnited States has also expressed hopes that the United States and Ukraine will work together moreeffectively on such issues as weapons proliferation and trafficking in persons. The Administrationhas downplayed Yushchenko's decision to honor a campaign pledge to pull Ukraine's troops out ofIraq by the end of this year. President Yushchenko visited the United States on April 4-7.
During the Ukranian presidential election campaign and during the ensuing electoral crisis,Congress approved legislation calling for free and fair elections in Ukraine and urged theAdministration to warn the previous regime of possible negative consequences for Ukraine's leadersand for U.S.-Ukraine ties in the case of electoral fraud. The 109th Congress will consider aid fundingfor Ukraine, and may take up extending permanent Normal Trade Relations to Ukraine, terminatingthe application of the Jackson-Vanik amendment to Ukraine, which bars permanent NTR status forcountries with non-market economies that do not permit freedom of emigration. This report will notbe updated. For background on the Orange Revolution, see CRS Report RL32691(pdf) , Ukraine'sPolitical Crisis and U.S. Policy Issues , by [author name scrubbed].