lacked:
Strong state
Developed civil society, able to compensate for the "failures" of the state and other public institutions
Initial capitals, developed markets and relevant skills (Kucenko, 2006).
Since 1992 the privatization of small and large enterprises through an open tender procedure has started in Ukraine, and from 1995 to 1999 the process of mass voucher privatization took place. However, as a result of large-scale voucher privatization millions of citizens, contrary to expectations, did not become real owners. For example, in Ukraine 19 million shareholders became owners in name only, not even filling out the ownership of the shares acquired. Non-cash privatization led to the acquisition of ownership by insiders, which caused a slow demand for institutional reforms. In turn, the lack of developed market institutions leads to the fact that transactions on the secondary market encourage the concentration of ownership in the hands of a small number of politically-engaged owners. On this basis, very quickly were formed a "redistributive coalitions", which led to the crystallization of the economic dominance of several major business and political groups of "oligarchic" nature (Kucenko, 2006).
This feature quiet well displays a system of internal and external factors, the emergence and development of political crisis in Ukraine.However, it suggests that substantial basis of this system is the fact that Ukraine is oligarchic state. This is a pivotal component of the internal economic factors. (Koryakina_1)
Ukraine from 1994 until 2004 was ruled by President Leonid Kuchma and group of powerful business men so-called "oligarchs" who supported him during the elections in 1999. His policies did not differ by significant reforms, but were characterized by corruption and infringement of human rights (Woehrel, S., 2009).
Control over the proceeds of all revenues from oil and gas resources on account business structures, controlled by a "clan" of Leonid Kuchma, gave oligarchs economic weight and unlimited opportunity to influence political decisions. This economic factor has contributed to the deepening crisis in politics due to the power crisis 1999 - 2000 periods.
However, it should be once more noted that Ukraine, like most of the CIS countries, is economically dependent on Russia.This is evidenced by a number of significant facts. Back in 1999, Ukraine was considered as hopeless defaulter for gas.On that period it was owed to Gazprom $ 1,065 billion.Moreover, Russia was supplying gas to Ukraine for only $ 34 per thousand cubic meters. Then it became obvious that if E. Primakov (Russian Prime-Minister at that time) would not visit Kiev, the Ukrainian would suffer worst economic collapse, contributing to worsening Crisis in politics (Koryakina, 2006).
These events were linked to the attempt of the Ukrainian president to blackmail Moscow that was associated with Ukraine's desire to enter NATO. In 1998 in response to a "public flirtation" of the Ukrainian authorities with "the West" took place the breach of the Russian - Ukrainian energy relations.
In any way, Ukraine's geopolitical position between Russia and the European Union is often used by Ukrainian politicians to pressure the Russian leadership to the acquisition of certain economic and political advantages (Mirabdullaev, 2010).
Current situation
Since the Soviet collapse, relations between Ukraine and Russia were characterized by
both elements of cooperation and conflict. Difficul