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Ukraine’s presidential election Sunday, the ultimate winner of which will be determined in a second round Feb. 7 between Viktor Yanukovych and Yulia Tymoshenko, is unfolding against the background of financial ruin.

It has long been obvious that the defeat of the incumbent, Viktor Yushchenko, who has painted himself into the anti-Russian nationalist corner, would produce a political rapprochement between Ukraine and Russia. Yanukovych is committed to “nonalignment” — meaning no application for NATO membership. Meanwhile, Tymoshenko promises to submit to popular referendum any decision to join a military...