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Why Ukraine Allowed Russia's Fleet to Stay in Crimea

Yanukovych traded a much longer Sevastopol lease for cheaper gas, deepening a military presence that already divided Ukraine.
By Charles Joseph · Updated
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When Viktor Yanukovych became president in 2010, Russia already had permission to base its Black Sea Fleet in Crimea until 2017. Within two months, he agreed to add 25 years to that lease in exchange for lower gas costs—a bargain that reached far beyond an ordinary rental agreement.

The Lease Ukraine Already Had

The 1997 fleet agreements let Russia use specified naval facilities in Sevastopol and elsewhere in Crimea while recognizing Ukrainian sovereignty. Unless the two governments made a new deal, the main lease was due to expire in 2017.

Ukrainian presidents before Yanukovych had debated what should happen next. Viktor Yushchenko wanted preparations for a Russian departure, while Russia sought long-term certainty for the home of its Black Sea Fleet.

Yanukovych entered office promising to repair relations with Moscow, secure relief from high gas prices, and balance Russian ties with European integration. He also ended the push for near-term NATO membership and soon adopted non-bloc status.

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What the Kharkiv Pact Did

Yanukovych and Russian President Dmitry Medvedev signed the agreement in Kharkiv on April 21, 2010. It extended Russia's right to use the bases for 25 years after 2017, taking the lease through 2042, with the possibility of further five-year renewals.

In return, Russia reduced the price Ukraine paid for gas by 30 percent, capped at a discount of $100 per thousand cubic meters. Legally, the discount was structured as relief from Russian export duties and counted as additional rent for the bases.

The formula lowered Ukraine's bill but did not replace the underlying 2009 gas contract. Kyiv remained exposed to oil-linked prices and minimum-purchase terms that Yanukovych's government would later try to renegotiate.

The Ukrainian parliament ratified the pact on April 27. The vote unfolded amid shouting, smoke bombs, thrown eggs, and opposition claims that the rushed agreement traded national security for a temporary budget benefit.

Why the Deal Was So Controversial

Supporters argued that cheaper gas would ease pressure on households, heavy industry, and public finances while stabilizing relations with Ukraine's largest neighbor. They saw no realistic prospect of removing the Russian fleet in seven years without a costly confrontation.

Opponents argued that the constitution barred foreign bases, although a transitional clause allowed existing leases, and said Yanukovych had extended that exception for a generation. They also warned that a state-controlled energy discount could later be changed, while the military concession was fixed for decades.

The pact reflected Yanukovych's wider strategy: win practical concessions from Moscow without abandoning trade and political agreements with Europe. For a time, his government insisted it could pursue both.

What It Meant in 2014

The agreement did not permit Russian forces to seize airports, surround Ukrainian units, or replace Crimea's government. It did, however, mean that Russia entered the 2014 crisis with thousands of troops, secure facilities, equipment, intelligence capacity, and local familiarity already inside Ukraine.

Moscow therefore did not invade an empty peninsula from a standing start. It expanded an authorized but limited basing presence into an operation against the host country, violating the conditions that made the presence legal.

Before that rupture, Yanukovych's attempt to balance both directions faced a decisive test. In 2013, he had to choose whether to sign a far-reaching association agreement with the European Union under growing Russian pressure.