The authorities, including President Viktor Yanukovych, have repeatedly expressed concerns that Ukraine has not received any support in challenging Russia’s $7 billion gas bill or South Stream project, which would severely harm Ukraine’s bargaining position as a key gas transit country.
What Yanukovych failed to mention, however, is that he never reached out to Europe in the first place.
According to Janez Kopac, who runs the community’s day-to-day work, Ukraine has never sent an official request for assistance, and just one complaint about the South Stream project.
In a statement issued after one of Yanukovych’s recent upbraiding, Kopac added that the Russian pipeline was not financed by the EU.
Ukraine has failed to bring its primary and secondary legislation in line with Europeâs rule book, to liberalize markets and promote badly needed investment, especially to upgrade its aging pipeline system.
Regretfully, Kopac stopped short of telling Yanukovych that Ukraine’s track record within the Energy Community is full of self-serving talk and no action to improve life for businesses or individuals.
Ukraine has failed to bring its primary and secondary legislation in line with Europe’s rule book, to liberalize markets and promote badly needed investment, especially to upgrade its aging pipeline system.
By setting up European-style regulation, Ukraine’s energy sector could benefit from a healthy dose of competition.
That’s one reason why several EU states backed Russia’s Nord Stream, which was mostly financed by European banks.
A huge money losing pit, Ukraine’s Naftogaz Ukrainy has barely invested in upgrading its gas transport network, leaving both Russia and the EU to question the network’s reliability.
But instead of breaking up Naftogaz into separate entities in charge of production, supply and sales, Ukraine has toyed with the idea of a consortium with Russia, which would threaten Ukraine’s relations with Europe.
Instead of opening up to investments Ukraine is sabotaging a renewed International Monetary Fund lending program and losing $500 million a month by maintaining de facto subsidies for households.
It looks as if Ukraine keeps playing Russia’s game while being a part of the European energy market. As does the nation’s reticence to take Gazprom to court to challenge the $7 billion bill, despite the high hopes for a positive resolution.
Instead of opening up to investments Ukraine is sabotaging a renewed International Monetary Fund lending program and losing $500 million a month by maintaining de facto subsidies for households. This encourages inefficiency and goes to the big houses and residences occupied by the rich.
If Yanukovych really has the nation’s interests at heart, there are a lot of solutions being offered. If he doesn’t, well, there’s no shortage of scapegoats.
