The report is largely based upon surveys and global rankings by various international organisations, NGOs and news media.
The most alarming findings relate to the health of Ukrainian citizens. It finds that the HIV infection rate, human trafficking and deaths in coal mines all increased from 2010 to 2011.
Deteriorating economic environment
The most consistently negative developments were in the economic area. From 2010 to 2011, Ukraine dropped seven places in both the World Bank's investment climate ranking and Forbes magazine's conditions for business index. The report also highlights a marked decline in small and medium-sized enterprises.
The Ukrainian economy contracted severely over the course of the 2008-2009 world financial slump. The report cites data indicating that the proportion of Ukrainians living beneath the poverty level rose from 12.5% in 2008 to 13.8% in October 2011.
"At the same time the government has cut the budget for the Ministry of Social protection by 17.16% for 2012 whilst spending almost a billion dollars on the Euro 2012 football tournament and increasing budget expenditures on state administration by $45 million," the report says.
Ukraine's economic recovery is currently under strain due to international developments. Many members of the European Union, the country's most important trading partner, are struggling with their own economic challenges.
Last spring, the International Monetary Fund froze a lending programme to Ukraine over its failure to increase household gas prices and cut government expenditure. The Ukrainian government is in continued, protracted negotiations with Russia over imports of natural gas.
The finance minister, Fedir Yaroshenko, resigned yesterday (January 19) apparently due to tensions within the government over economic performance.
Worsening political climate
Politically, the situation is little better. The paper points to negative assessments by Reporters Without Borders, a press freedom group, and the Economist Intelligence Unit. In the latter's yearly Democracy Index, Ukraine falls from 67th in 2010 to 79th in 2011, while entering into the 'partly free' category.
The EU has been sharply critical of recent developments in Ukraine and in particular over what it considers to be the "politically motivated" trial of former Prime Minister Yulia Tymoshenko, who was convicted of abuse of office. These differences led to a failure to sign an EU-Ukraine Association Agreement at a summit last December.
The report also condemns the government for its apparent failure in the fight against graft, citing a fall from 134th to 152nd in the world in Transparency International's Corruption Perception Index, ranking it the lowest in Europe after Russia.