The Opacity of Russian-Ukrainian Energy Relations

Energy issues lie at the heart of Ukraine's economic, political and strategic challenges. A year after the 'orange revolution', the 'gas war' served to highlight the country's vulnerable position, being 80% dependent on imports of gas and having the world's most energy hungry economy. The 2005 crisis also highlighted the extreme opacity of the country's bilateral relations with Russia, which are governed as much by the interests surrounding Gazprom's relations as by those of the state. Yanukovich's return to power in the summer of 2006 coincided with a relative appeasement of relations with Moscow and a new division of spheres of influence in the Ukrainian energy sector. (author)