Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.

Friday, October 31, 2014

CFR Update: Ukraine and Russia Reach Gas Deal

Top of the Agenda

Ukraine and Russia Reach Gas Deal
Ukrainian and Russian officials signed a natural gas deal (NYT) on Thursday that provides Russian gas deliveries to Ukraine through March 2015. The deal had been delayed for months due to Ukraine's unpaid bills and Russia's annexation of Crimea. The European Union, which led negotiations, is also a signatory of the agreement, making this the first trilateral energy agreement (EU Observer) of its kind. Funds from the EU and the International Monetary Fund will help Ukraine repay its debts.

Analysis

"Russia's supply lines run through Ukraine to several EU countries, and as much as 70% of its gas to the EU is carried through those pipes. So while Russia has in recent years tried to bypass Ukraine, in particular with the Nord Stream and South Stream projects, the two countries are, for now, inextricably linked," writes Paul Kirby for the BBC.
"Many analysts believe Ukraine cannot get through the coming winter without cutting some kind of gas purchase deal with Russia. That question would not have arisen if Ukraine's leaders had made better decisions years ago and the country were now producing 30 BCM of gas," writes Steven Pifer in the American Interest.
"[Ukraine]'s economy is heavily dependent on Russia, not only for gas but also as its largest export client. Cutting off Russia—as joining the E.U. might entail—would be a risky move. As for the infusion of Western money, it could disappear into a hole of corruption. Ukraine's admission into the E.U. seems unlikely, despite the trade deal, Poroshenko's optimism, and all the flags," writes Nicolas Niarchos in the New Yorker.




'No one to stay cold', as Russia and Ukraine clinch winter gas deal

http://euobserver.com/foreign/126330

Russia's gas fight with Ukraine

http://www.bbc.com/news/world-europe-29521564 

Taking Stock in Ukraine
Seven things to know about the crisis, Moscow’s and Kyiv’s actions, and the West’s response.
 
http://www.the-american-interest.com/articles/2014/10/28/taking-stock-in-ukraine/ 

 

Borderland: Ukraine’s Dilemma

http://www.newyorker.com/news/news-desk/eu-russia-ukraine-dilemma 







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