History of Ukrainian-Russian Gas Problems Russian Gazprom placed vital assets in Ukraine under USSR Grazprom lost direct control over assets to Ukraine after the collapse of the USSR Ukraine control of pipelines and Russian control of gas creates massive ties between the two in the gas industry At collapse of USSR, 90% of gas to Europe went through Ukraine
History of Ukrainian-Russian Gas Problems (con’t) 1999: Ukraine agrees1992: Russia 2009 Gas Crisis to relieve debt byhalts gas 1994 Gas shuts off gas to selling equipmentallocations Agreement Europe for 22 daysto Ukraine balancing interests until agreement 2004: Orange was reached of two countries Revolution1990 2009 1998: Dispute over 2006: Russia cuts off Ukrainian siphoning gas gas to Ukraine; reach intended for Europe 2006 Gas Agreement1992: Russiareduces gas flow to 2001: Russia andUkraine Ukraine reach 2001 Transit Agreement
Better Understanding Ukraine- Russian Gas Problems http://www.youtube.com/watch?v=ka7S0R9dhGg
Future Pipeline Possibilities Nord Stream Pipeline •Connects Russian gas w/EU more directly •“European interest” •Line 1 is already operational •Financing for Line 2 secured in March 2011 •Set to be complete later this year (2012)
Future Pipeline Possibilities South Stream •Construction to begin 2013 •Important for Russian influence and European energy security •Cost: 12-15 billion euros •First gas supplies to flow late 2015
Future Pipeline Possibilities Nabucco Pipeline •Construction set to begin 2013 •Costs roughly 8 billion euros •Gas will be supplied from Caspain region and Middle East •Significant because it is free from Russian interest and supply •Set to be completed in 2017
Possibilities for the future of the Ukraine Possible transportation of Iranian gas Turning inward to own natural resources Must first deal with internal problems before such a scenario is possible
Addressing Ukraine’s Internal Problems Corruption in politics and gas supply to Ukraine Legislation difficulties relating to the bureaucratic nature of the Ukrainian political system Energy management or lack thereof; inefficient use by populace and inability of government to make change Lack of resource use; the potential and lack of progress towards this potential
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.