A border country between Russia and Europe
After the collapse of the Soviet Union, Ukraine experienced a dramatic economic decline that was exacerbated by the financial and economic crisis of 2008. Since then the economy has managed to recover, but the economic upturn was prevented by the fact that the country was greatly dependent on Russia in the field of energy and suffered from widespread corruption. More than a third of the population lives below the poverty line. When during the Orange Revolution of 2004 a peaceful protest movement forced the manipulated presidential election to be annulled, there were great hopes of modernisation and more openness to the West. But these were to prove unfounded. Ukraine is once again undergoing upheaval. While in June 2014 the association agreement with the EU was signed, the situation in eastern Ukraine, which is predominantly oriented towards Russia, remains tense. The annexation by Russia of the Ukrainian Crimean peninsula has made the situation worse. KfW Development Bank supports Europe's second-largest country in the promotion of small and medium-sized enterprises, in municipal development and in the field of energy.