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A Ukrainian perspective of the 2009 gas dispute

13 February 2009
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The new gas deal is a step forward in ending a period of ‘special’ energy relations between Kyiv and Moscow. A more transparent gas import scheme to Ukraine and the convergence of import prices with those in the EU definitely make rent-seeking activities less likely. However, the Ukrainian economy and political elites remain highly dependant on the terms of Russian gas supplies. Ukraine ought to start making its internal energy market and the economy more resilient to the possible Russian abuse of the market power in the future.

The gas dispute between Kyiv and Moscow in 2008-9 became the climax of the ‘special’ energy relations between the two countries that have persisted since the early 1990s. The dispute over the commercial terms of the Russian gas transit and supply clearly had political motivation as well. Moscow is still interested in gaining control over the energy assets in the post-Soviet countries, and the political actors in Kyiv continue to view the energy sector as a source of rent seeking. However, this time the dispute resulted in the prolonged disruption of gas supplies which has further discredited both countries as reliable EU energy partners.