Ukraine-Russia Gas Disputes Essay

2537 Words Nov 22nd, 2010 11 Pages
Ukraine and Russia Gas Conflict
In the recent years, the relations between Ukraine and Russia have been hostile. Russia is the largest producer of gas while Ukraine is the largest importer of the same commodity from Russia. Gas fro Russia to the EU countries, east and southern Europe passes through the Ukrainian territory and Russia has to pay transit fee. It is this issue of the supply and prices of gas that precipitated a very big conflict between the two countries and the impact was felt allover Europe. In this paper, the historical background of the issue, the current sate of the conflict, the solutions to the conflict; the future of gas supply and the effects of the 2009 conflict to Europe will be addressed.
…show more content…
This supported the status of Ukraine as being among countries with efficient energy and the world’s largest gas importers (Schwarz 1). Russia was not comfortable with this status especially because of the fact that Ukraine had not paid billions in outstanding gas debts and was stealing gas from the transit system for its domestic use. This is why Russia started piling pressure on Ukraine to hand over the transit infrastructure so as to settle the new outstanding gas debts (Brzezinski and Brzezins 160).
The current crisis The current crisis that started in 2009 started because of the failure to reach an agreement on supplies and gas prices for the year 2009. At the start of 2009, Ukraine owed the Russian company more than $2.5 and the Russian company cut it supplies demanding the payment of the debt before a new supply can be made. Though Ukraine paid in January 2009, Gazprom remained adamant that the full amount has to be settled before any other supplies can be released. Ukraine paid a further $O.5 m but the dispute turned from debt to gas prices (Lynch 1). The two parties could not agree on the gas prices for 2009 and Gazprom fully cut all the deliveries that were destined for Ukraine because Naftohaz could not match the 250$ price that Gazprom wanted. However, deliveries meant for the EU continued at a reduced rate of 300 million cubic

Related Documents