Ukraine’s plans to cut gas imports and its reliance on Russia for its energy have been undermined by a new cut-price gas contract. The new deal, agreed in December 2013, undermines Ukraine’s strategic objectives of developing its own energy sector and keeps Russia’s most important neighbour, under Moscow’s influence.

<i>Ukraine stopped all gas imports from Poland and Hungary in January 2014 after importing two billion cubic metres (cm) in 2013 through a newly-created reverse-flow option operating in Poland since 2012 and Hungary since 2013. The suspension of these imports highlights its shifting energy strategy and a rising gas dependence on Russia. Officially, this is justified...

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Dr. Frank Umbach
Without deeper restructuring, modernisation efforts and liberalised market reforms, Ukraine will be unable to cope with its energy supply challenges, including decreasing its extremely high energy consumption
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