Ukaraine is located at a pivotal crossroads in Europe between east and west and has the potential to play an important role in combatting terrorism in two ways. First, by consolidating democracy and democratic control over its armed forces, Ukraine can be a stabilizing force in Eurasia. Second, the country can contribute toward the defeat of terrorism by developing niche capabilities, particularly in its peacekeeping forces. Dr. Deborah Sanders, the author of this External Research Associates Program (ERAP) monograph, argues that for Ukraine to be an effective U.S. ally in the war on terror, it must engage in comprehensive military transformation. Such a transformation depends on developing its military professionalism, democratic political control, and democratic professionalism. She also contends that Ukraine must consolidate democracy and develop good relations with its neighbors, beginning with the Russian Federation, to fulfill its potential as an ally.