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On July 16, 1990, the new
parliament adopted the Declaration of State Sovereignty of
Ukraine. The declaration established the principles of the
self-determination of the Ukrainian nation, its democracy, political
and economic independence, and the priority of Ukrainian law on the
Ukrainian territory over Soviet law. A month earlier, a similar
declaration was adopted by the parliament of the Russian SFSR. This
started a period of confrontation between the central Soviet, and
new republican authorities. In August 1991, the conservative
Communist leaders of the Soviet Union attempted a coup to remove
Mikhail Gorbachev and to restore the Communist party's power. After
the attempt failed, on August 24, 1991 the Ukrainian parliament
adopted the Act of Independence in which the parliament declared
Ukraine as an independent democratic state. A referendum and the
first presidential elections took place on December 1, 1991. That
day, more than 90 percent of the Ukrainian people expressed their
support for the Act of Independence, and they elected the chairman
of the parliament, Leonid Kravchuk to serve as the first President
of the country. At the meeting in Brest, Belarus on December 8,
followed by Alma Ata meeting on December 21, the leaders of Belarus,
Russia, and Ukraine, formally dissolved the Soviet Union and formed
the Commonwealth of Independent States (CIS).
Ukraine was initially viewed as a republic with favorable economic
conditions in comparison to the other regions of the Soviet Union.
However, the country experienced deeper economic slowdown than some
of the other former Soviet Republics. During the recession, Ukraine
lost 60 percent of its GDP from 1991 to 1999, and suffered
five-digit inflation rates. Dissatisfied with the economic
conditions, as well as crime and corruption, Ukrainians protested
and organised strikes.
The Ukrainian economy stabilized by the end of the 1990s. A new
currency, the hryvnia, was introduced in 1996. Since 2000, the
country has enjoyed steady economic growth averaging about seven
percent annually. A new Constitution of Ukraine was adopted in 1996,
which turned Ukraine into a semi-presidential republic and
established a stable political system. Kuchma was, however,
criticized by opponents for concentrating too much of power in his
office, corruption, transferring public property into hands of loyal
oligarchs, discouraging free speech, and electoral fraud. In 2004,
Viktor Yanukovych, then Prime Minister, was declared the winner of
the presidential elections, which had been largely rigged, as the
Supreme Court of Ukraine later ruled. The results caused a public
outcry in support of the opposition candidate, Viktor Yushchenko,
who challenged the results and led the peaceful Orange Revolution.
The revolution brought Viktor Yushchenko and Yulia Tymoshenko to
power, while casting Viktor Yanukovych in opposition.
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