Energy, a persistent strategic point of vulnerability for Ukraine

Energy represents the major economic, political and strategic challenge that Ukraine is facing fifteen years after independence. The "gas war" with Russia in late 2005 exposed this persistent vulnerability. In order to obtain gradual price hikes, Kiev had to accept most of the conditions demanded by Gazprom: separation of the problem of the supply of gas to Ukraine from the question of transportation toward Europe, access to the domestic market. Since a new coalition mainly made up of forces sensitive to Russian interests has come to power in Kiev, tensions in matters of energy should lessen for the time being. Eventually, only a thoroughgoing restructuring of the economy - the most "energy hungry" in the world - will enable Ukraine to limit its dependence and thus improve its position in Europe.