At the core of Ukraine’s Euro-Atlantic integration goals lies European energy security. Both the EU and US are anxious for Ukraine and Moscow to develop a more transparent energy policy by cutting down on wasteful energy consumption, boosting domestic hydrocarbon production and, first and foremost, by eliminating middlemen, such as RosUkrEnergo, the intermediary that controls the multi-billion-dollar business of supplying gas to Ukraine and exporting it further to European markets. RosUkrEnergo and other intermediaries are widely viewed as suspect structures. Even a top Russian official admitted this month that RosUkrEnergo’s role is not clearly understood.
In a speech at a recent Ukraine-EU Relations round table in Washington DC, Deputy Assistant Secretary at the US State Department David Kramer said, “the US and EU can do more to support broader European energy security through dialogue with Ukraine and through efforts to help Ukraine develop a more transparent energy policy and become more energy efficient and a more reliable participant in energy markets. We need to see action on transparency, diversification, and the elimination of middlemen as a path to energy security.”
He continued: “Ukraine needs to address the issue of energy security before its independence and sovereignty are threatened. Reforms in the energy sector will make Ukraine a more attractive partner for the EU, the US and other friends of Ukraine.”
We agree. Immediate action is called for. It is in Ukraine’s and Europe’s best interests to ensure transparency and diversification, and most importantly, to finally eliminate the murky middlemen in the energy sector, even if it means paying more for natural gas. The long-term gains of removing such structures far outweigh the short-term pains of paying more for gas.
Ukraine, the country’s business tycoons and political elite often pander to Moscow’s interests. It’s time for them to break their drug addiction to lower prices for gas supplied and manipulated by Moscow – at key moments – for geopolitical aims.
