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Description

On January 7, 2009, the existing energy relationship among Europe, Russia, and Ukraine broke down over a natural gas dispute, just as it had done 3 years earlier. Amid subzero temperatures in many parts of Europe, Russia turned off its gas supply to Ukraine, causing shortages in more than 20 European countries. Thousands across the continent were left in the dark, and government services were closed. While the flow of gas was eventually restored, Russian gas disputes with Ukraine continue, and the prospect of another Gazprom shutoff has become an annual event for European consumers. Despite earlier indications that another breakdown in negotiations would lead to blackouts in Europe early in 2010, the potential crisis was averted via a Russia-Ukraine deal that restructured earlier payment and pricing arrangements. However, it is doubtful that Ukraine can continue timely payments for its domestic gas consumption and maintain its own pipeline infrastructure. Fundamental changes to Russia-Ukraine energy transport agreements are coming.

Document Type

Policy Brief

Publication Date

2-2011

Publication

Strategic Forum

Publisher

National Defense University Press

City

Washington, DC

European Energy Security: Reducing Volatility of Ukraine-Russia Natural Gas Pricing Disputes

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