The Ukrainian energetic system under the light of the crisis: beyond gas transit, a governance challenge

The objective of this report is to address and describe the problematic of the Ukrainian gas transit within a wider inner context and under the light of the current gas crisis. Beyond the European security of supply, maintaining the gas transit is a major domestic issue for Ukraine, from an economic as well as political point of view. This means that, in order to avoid a new gas crisis, Ukraine must significantly reform its energy sector in order to reduce its dependency and to re-balance its energy mix. In a first part, the author discusses gas price and transit network management as the main stakes of the gas crisis: recall of traditional dispute about gas between Russia and Ukraine, ageing and corruption as characteristics of a collapsing gas corridor, the Ukrainian law of September 2014 as a first step for a reform of energy governance. In a second part, the author discusses the future of the Ukrainian gas sector and the issue of stability of the national energy system. This should be based on short term options to strengthen the resilience of the gas sector in front of Russian supply disruption, a priority for a gas independence, and necessary review of the energy mix