Blue &Yellow: Politics and Economics in Ukraine

The economy contracted by 15% in 2009 its worse performance since 1994 according to BusinesWeek. The IMF had forecast a 14% contraction in GDP. Reuters' article on the economic news offers one reason for the sharp contraction by Ukraine last year. 

Analysts have long said reliance on steel -- a legacy from the Soviet days -- dictates the fate of the economy and until structural reforms are introduced, the country will continue to swing with the price of metals.

"Steel is a particularly bad commodity from the credit perspective because every time there's a credit crunch, people stop buying cars and houses," said Commerzbank analyst Dmitry Sentchoukov.

Few believe President elect Viktor Yanukovich, backed by wealthy industrialist and steelmen from the eastern regions, would usher in a period of such fundamental reforms.

The last bit (emphasis mine)  might be true, but it depends on how the economy recovers this year and how much the oligarchs push for increase economic integration with the EU.  In Revolution in Orange ("The Ancien Regime", pg. 13) Anders Aslund argued that the impetus for economic reform was  that "creditworthiness [of Ukraine] had to be restored." In this case, Regions could embrace major reforms, if the economic remains dire.