PISM Policy Paper no. 28: Ukraine’s First Year in the Energy Community: Restart Needed

Ukraine’s membership in the Energy Community has recently come under intense scrutiny because of apparent disconnect between the expectations of the Ukrainian authorities on the one side, and of the organisation’s representatives on the other. The paper points to the possible reasons for this disturbing divergence, highlighting in particular the difficulties in reforming the Ukrainian energy sector. Some of the delays in meeting the legal obligations resulting from the membership in the Community can be attributed to the ongoing negotiations with Russia over the prices of imported natural gas. Although Ukraine’s long-term, strategic interests in the area of natural gas transit and electricity production could help bridge the differences with the Energy Community, there is no room for complacency on either side. The author argues that progress towards Ukraine’s further integration with the EU in the energy field is not a foregone conclusion, and a rethinking of both the pace and the instruments of cooperation is urgently needed.