From vassalisation to emancipation. Ukrainian-Russian gas co-operation has been revised
From vassalisation to emancipation. Ukrainian-Russian gas co-operation has been revised

Author(s): Szymon Kardaś, Tadeusz Iwański
Subject(s): Economic policy, International relations/trade, Developing nations, Geopolitics
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Ukraine; Russia; gas supply; Naftogas;
Summary/Abstract: The awards by the Arbitration Institute of the Stockholm Chamber of Commerce (further: the Arbitral Tribunal) concerning the contract on gas supplies to Naftohaz and the volume of Russian gas transit via Ukraine have radically changed the model of gas relations between the two countries as they have existed until now. Kyiv’s victory is its crowning achievement in the process of emancipation from Russian dominance in the energy sector which began after the Revolution of Dignity. This has also significantly strengthened Ukraine’s position with regard to Russia and the EU because Gazprom was found to have been in breach of the transit contract. The decisions of the Arbitral Tribunal mark a caesura in the gas co-operation between Ukraine and Russia, which has continued for almost three decades and become infected with corruption, lack of transparency and politically motivated decisions. Since the collapse of the USSR, Ukraine has been dependent on Russian gas supplies, and has been one of Gazprom’s key clients. As long as natural gas remained relatively cheap, this situation was satisfactory to contractors in Ukraine as well, as it offered great opportunities for a section of the Ukrainian political class to build up their fortunes illegally. However, during Vladimir Putin’s presidency (since 2000), Moscow has capitalised many times on Ukraine’s gas dependence to achieve its political goals. The Revolution of Dignity and the war with Russia were breakthrough moments in energy relations with Russia. The new government in Kyiv, unlike all its predecessors, took the risk of entering into a legal dispute with Gazprom.

• Details
• Contents