The collapse of the Yanukovych government did not sit well in Moscow. U.S. Seen initially as a political move (Lutsenko was not an attorney or from the legal world) to consolidate Poroshenko's influence and to satisfy critics, including in the United States, observers, despite some internal problems including a dispute between staff members from the prosecutor-general's office and members of the new Anti-Corruption Bureau, continue to express optimism that Lutsenko appears committed to move forward on needed reforms and prosecutions of corrupt officials of both the former and current governments. Energy has long been an important factor in Ukraine's relations with Russia and a key to the success of Ukraine's economic reforms. Annexation has not been all positive for Crimea. Demonstrators seized government buildings. Several prisoner exchanges have taken place between Kyiv and the separatists. This approach, in the eyes of some, reinforces resentment of the West and suspicions of Europe's commitment to its own principles of rule of law and raises the question of whether Europe's real priority is lasting peace and political reform or simply implementation of the Minsk agreement. In response to the crisis in Ukraine, in March 2014, the European Commission unveiled an initial support package of €11 billion (about $15.5 billion) focusing on the comprehensive reform process initiated by the new government in Ukraine. Pointing to the difficulty in the EU's ratification of the AA with Kyiv and the delays associated with implementation of the visa liberalization agreement, some in Ukraine are beginning to conclude that key EU member states are dragging their feet and have failed to honor their promises to Ukraine. The United States has also placed additional restrictions on defense-related exports to Russia. Nevertheless, some business sectors in Europe that were geared toward the Russian market as well as the agriculture sectors have continued to complain. According to USAID, since the crisis began in late 2013, the U.S. government has committed more than $1.3 billion in foreign assistance to Ukraine to advance reforms, strengthen democratic institutions and civil society, stimulate economic growth, and help Ukraine more safely monitor and secure its borders and preserve its territorial integrity. This amount includes some $135 million in humanitarian assistance provided through the U.N., and three $1 billion loan guarantees. In April 2014, President Obama signed into law H.R. Several other pieces of legislation were adopted by the House and Senate over the period of the crisis, including urging NATO allies and European Union member states to immediately suspend military cooperation with Russia; to adopt visa, financial, trade, and other sanctions on senior Russian and Ukrainian officials and oligarchs complicit in Russia's intervention and interference in Ukraine; requiring the U.S. government to assist Ukraine to recover assets stolen by the previous regime through corruption; to provide accurate information to eastern Ukraine, Crimea, and Moldova in order to counteract inflammatory Russian propaganda; authorizing increased military and economic assistance for Ukraine; and authorizing support for Russian civil society and democracy organizations. In the 2015 Defense Authorization Act (NDAA), Congress supported an enhanced security assistance package for Ukraine, and expanded that initiative in the 2016 NDAA. On September 21, 2016, the U.S. House adopted the STAND for Ukraine Act ( H.R. 5094 , Engel). The legislation addresses the ongoing crisis in Ukraine by clarifying the position of the United States on Russia's illegal occupation of Crimea, tightening sanctions on Russia, and addressing new options to provide support for Ukraine. In the waning hours of the 114 th Congress, a Senate version of the act was introduced by Senator Menendez of New Jersey. Prime Minister Groysman, who came into office with little public confidence in his willingness to seriously tackle the root causes of much of the country's corruption, has since shown a relatively strong commitment to enact reforms and has appeared to be less intimidated than feared by those who oppose those reforms. The facts on the ground in the Donbas have also created an internal challenge to the government in that the stalemate in the Donbas continues to fuel the growing gap between those individuals, particularly inside Ukraine, who do not want to implement parts of the Minsk-2 agreement—particularly by amending the Ukrainian constitution—or to accommodate the separatists at all until the separatists fulfill their responsibilities to Minsk-2 and those, under pressure from the outside, who want to keep the process moving forward as long as the other side appears willing to do so. At the same time, although a period of political stability and progress in the economic and reform efforts of the Groysman government would be good for Kyiv and the West, despite the continued conflict in the east, such progress could also cause problems for Kyiv. U.S. Sanctions

After an initial round of sanctions imposed on Russia for its annexation of Crimea and military activity in eastern Ukraine, the United States and the EU continued to add additional travel freezes, visa restrictions, and economic sanctions on Russia for its failure to cease its support for the pro-separatists' actions in the Donbas regions of eastern Ukraine.
November 2016 marked the third anniversary of the popular uprising that erupted in Kyiv's Maidan Square in late 2013 over the government's decision to reject closer relations with the European Union (EU). February 2017 will mark the third anniversary of the collapse of the Kremlin-favored government of Viktor Yanukovych. The regime's demise was brought about by bitter protests and by civil society's reaction to a brutal government response to the Maidan protestors. In the aftermath of the turmoil of the Maidan and the collapse of the government, Ukraine saw the emergence of a pro-Western government promising reform and generally anxious to lessen Moscow's influence, as well as an energized civil society committed to pressing for the implementation of serious reform measures and determined to draw closer to the EU and the United States.
The current government of President Petro Poroshenko and Prime Minister Volodymyr Groysman, appears, to many, to be moving slowly and cautiously in a positive direction, implementing much-needed government reform, addressing endemic corruption, and achieving economic progress. For some, the government has already achieved what they believe has been the most substantial reform wave seen in Ukraine in the last 25 years.
Under Groysman, the adoption of a public asset and income declaration law required of all government officials has been hailed as a significant anticorruption achievement. Significant reforms also have taken place in the federal prosecutor's office, energy and banking sectors, and health care system. Economic progress has begun to increase slowly as the government has reduced its budget and accounts deficits. Exports have begun to increase. Shortcomings in the rule of law that have plagued the country are also reportedly being overcome. The judicial system, however, remains a problem, and attempts to promote privatization have not been successful.
At the same time, the government's cautious approach has failed to impress some sectors of a frustrated public that continues to pressure the government for more progress. The influence of a small group of old-time oligarchs and politicians, who initially refused to relinquish power or support reform, remains a distraction, and the opposition continues to criticize the government. And although the international community appears to be more encouraged by government action, many concede more work needs to be done.
Ukraine's problems have not been solely political and economic. Russia responded to the change of government in Kyiv by seizing Ukraine's Crimea region and annexing it March 2014. In April 2014, armed pro-Russian separatists supported by Moscow seized parts of the Donbas region of eastern Ukraine. A 12-point agreement to end the conflict, known as Minsk-2, was reached by the leaders of Russia, Ukraine, France, and Germany and took effect in February 2015. Since then, however, the separatists and their patrons in the Kremlin have shown little interest in fulfilling their responsibilities to implement Minsk-2, whereas Europe and the United States have continued to press Kyiv to move forward with implementing the agreement.
The United States and the EU strongly condemned Russia's incursions into Ukraine and have imposed sanctions on Russian individuals and key Russian economic and business sectors. The United States has committed close to $1.5 billion in foreign assistance to Ukraine to advance reforms and strengthen democratic institutions, including some $135 million in humanitarian assistance provided through the United Nations and $3 billion in loan guarantees.
The U.S. Congress has been a strong advocate for assisting Ukraine. In 2014, the Ukraine Freedom Support Act (H.R. 5859) was adopted, which, among other provisions, authorized increased military and economic assistance for Ukraine. In the Fiscal Year 2017 Defense Authorization Act (NDAA), Congress supported an expansion and enhancement of security assistance for Ukraine that was initiated by the U.S. government in 2015. In September 2016, the House adopted the STAND for Ukraine Act (H.R. 5094, Engel), which, among other provisions, clarified the position of the United States on Russia's illegal occupation of Crimea. A Senate version of the legislation was introduced in the waning days of the 114th Congress, but the legislation was not enacted.
Nevertheless, some observers believe there is a growing Ukraine fatigue in Europe and a euro-skepticism taking hold in Ukraine, fueled by those who oppose the government and its reform effort and by those who have become disenchanted by Europe's lack of actions to support the pro-Europe movement in Ukraine. Concerns about the new U.S. Administration's commitment to Ukraine also are raising the level of anxiety among many in Kyiv.
This report provides an overview of the situation in Ukraine.