The purpose of this study is analyze how and why international identity matters particularly when discussing why states choose to break from international regimes in the form of economic arrangements. This study looks in depth at international identity as a concept and then applies it to state decision-making processes. I do not assume that international identity perspectives are the only reason why a state may choose to break from an economic arrangement, but rather introduce it as a partial explanation, proving that it as an important factor to consider when analyzing how and why states do what they do. My research question is do international identity perceptions influence why states choose to break from international regimes in the form of economic arrangements? I argue that international identity perspectives affect state choice based upon given international identity determinants, which influence state action in dyadic international relationships in the form of breaking from economic arrangements. I use two cases to show how international identity influences state decision-making processes: Ukraine and Russia and the United Kingdom and the European Union. I show how political elites use shared stocks of knowledge to encourage a desired international identity outcome, which in this study, is meant to break economic arrangements. This study argues that international identity affects the durability of economic arrangements regardless of economic or material benefit. This is not to say that international identity is the sole purpose for terminating economic arrangements, but rather a partial explanation to factors contributing to state-decision making processes. This is a constructivist approach to studying international identity and agency in international relations with the intent to provide a more comprehensive breadth of knowledge in studying state decision-making processes.