[GSlob]

Why not into "Varyagshchina" (or "Varangiya") then? It would completely avoid even phonetic similarity with 'Rus' and a lot of associated unpleasant memories.

[aliquis]

Why Varangya? Has it got anything to do with Rurik dynasty? Then, perhaps, Varyaghia? But Rurik was summoned to Novgorod, not Kiev. In a way, you could say, Rus' started off in Novgorod, rather then Kiev...

As to the question of Rus', however, I'd say, there are too many residual negative emotions associated with the word Russia - Rus' - in the western half of Ukraine. The whole thing looks more like a typical geopolitical spat over the influence over Central Europe then a genuine concern of promoting democracy in Ukraine. It's a very delicate situation.