Even if we ignore the consequences of Russia’s intervention into Ukraine’s internal affairs, Ukraine confronts some seemingly insurmountable problems in transitioning to a stable and prosperous state. Having inherited a top down and largely corrupt political structure, there are those who see decentralization in some form as a partial solution. Here, though, we argue that decentralization, even if crafted on the European Union template of subsidiarity, can introduce problems of collective action that would further undermine the country’s viability. To avoid exacerbating the problems of collective action occasioned by Ukraine’s fractured political economic system, decentralization must proceed with an understanding of how those problems are treated in successful federal states