Ukraine considers Euro-Atlantic integration its primary foreign policy objective, but in practice balances its relationship with Europe and the United States with strong ties to Russia. The European Union's Partnership and Cooperation Agreement (PCA) with Ukraine went into force on March 1, 1998. The European Union (EU) has encouraged Ukraine to implement the PCA fully before discussions begin on an association agreement. The EU Common Strategy toward Ukraine, issued at the EU Summit in December 1999 in Helsinki, recognizes Ukraine's long-term aspirations but does not discuss association. On January 31, 1992, Ukraine joined the then-Conference on Security and Cooperation in Europe (now the Organization for Security and Cooperation in Europe--OSCE), and on March 10, 1992, it became a member of the North Atlantic Cooperation Council. Ukraine also has a close relationship with NATO and has declared interest in eventual membership. It is the most active member of the Partnership for Peace (PfP).

Ukraine maintains peaceful and constructive relations with all its neighbors; it has especially close ties with Poland and Russia. Relations with Russia are complicated by energy dependence and by payment arrears. However, relations have improved with the 1998 ratification of the bilateral Treaty of Friendship and Cooperation. Also, the two sides have signed a series of agreements on the final division and disposition of the former Soviet Black Sea Fleet that have helped to reduce tensions. Ukraine became a member of the Commonwealth of Independent States (CIS) on December 8, 1991, but in January 1993 it refused to endorse a draft charter strengthening political, economic, and defense ties among CIS members. Ukraine was a founding member of GUUAM (Georgia-Ukraine-Uzbekistan-Azerbaijan-Moldova).

In 1999-2001, Ukraine served as a non-permanent member of the UN Security Council. Historically, Soviet Ukraine joined the United Nations in 1945 as one of the original members following a Western compromise with the Soviet Union, which had asked for seats for all 15 of its union republics. Ukraine has consistently supported peaceful, negotiated settlements to disputes. It has participated in the quadripartite talks on the conflict in Moldova and promoted a peaceful resolution to conflict in the post-Soviet state of Georgia. Ukraine also has made a substantial contribution to UN peacekeeping operations since 1992.

Disputes - international: dispute with Romania over continental shelf of the Black Sea under which significant gas and oil deposits may exist; agreed in 1997 to two-year negotiating period, after which either party can refer dispute to the ICJ; has made no territorial claim in Antarctica (but has reserved the right to do so) and does not recognize the claims of any other nation.

Illicit drugs: limited cultivation of cannabis and opium poppy, mostly for CIS consumption; some synthetic drug production for export to West; limited government eradication program; used as transshipment point for opiates and other illicit drugs from Africa, Latin America, and Turkey, and to Europe and Russia; drug-related money laundering a minor, but growing, problem