Russia exports a large percentage of its gas, oil, and coal to the EU, with Ukraine controlling much of the pipeline infrastructure from Russia to Europe. This creates an interdependent relationship where disputes over gas prices and debts have led to crises affecting Russian and European gas supplies. Future pipelines like Nord Stream and South Stream aim to diversify supply routes, while Nabucco could transport gas without relying on Russia. For Ukraine to utilize its strategic position, it must address domestic problems like corruption and inefficient energy management.

1. Kenny Laskowski

2. Basics of Interdependence
EU imports from Russia exports to EU
Russia (as % of total (as % of total
resource imported) resource exported)
Gas 36% 70%
Oil 31% 80%
Coal 30% 50%

3. Importance of the Ukraine

4. 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

5. History of Ukrainian-Russian Gas
Problems (con’t)
1999: Ukraine agrees
1992: Russia 2009 Gas Crisis
to relieve debt by
halts gas 1994 Gas shuts off gas to
selling equipment
allocations Agreement Europe for 22 days
to Ukraine balancing interests until agreement
2004: Orange was reached
of two countries
Revolution
1990 2009
1998: Dispute over 2006: Russia cuts off
Ukrainian siphoning gas gas to Ukraine; reach
intended for Europe 2006 Gas Agreement
1992: Russia
reduces gas flow to 2001: Russia and
Ukraine Ukraine reach 2001
Transit Agreement

6. Better Understanding Ukraine-
Russian Gas Problems
 http://www.youtube.com/watch?v=ka7S0R9dhGg

7. 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)

8. 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

9. 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

10. 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

11. 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