Varangians who first settled around Ladoga and Novgorod, then
gradually moved southward eventually reaching Kiev about 880. Kievan Rus' included the western part of modern Ukraine, Belarus, with larger part of it situated on the territory of modern Russia. According to the Primary Chronicle the Rus' elite initially consisted of Varangians from Scandinavia.During the 10th and 11th centuries, it became the largest and most powerful state in Europe. In the following centuries, it laid the foundation for the national identity of Ukrainians and Russians. Kiev, the capital of modern Ukraine, became the most important city of the Rus'.