The weaknesses of Ukraine’s energy sector since independence in 1991 shine a spotlight on the foundational link between energy security and national security. Ukraine is one of the least energy-efficient countries in Europe—analysis by the U.S. Energy Information Administration found Ukraine’s economy to be two or three times as energy intensive as many neighboring countries, including Poland, Slovakia, and the Czech Republic. While Ukraine’s energy sector accounts for about 12.6 percent of its GDP, the country’s energy intensity is staggering. This creates a massive headwind that drags down national welfare, crowds out economic growth and job creation, and leaves the country vulnerable to political pressure from energy suppliers. Energy is at the heart of every country’s economic well-being, and thus its social and political health. A well-functioning energy sector, which enables all other economic activity, is essential to economic and national security. Reforming its energy sector is critical, unfinished business in Ukraine’s economic and political agendas.
Ukraine's Energy Challenge
Carnegie Europe: Reforming Ukraine’s energy sector – critical unfinished business
A picture taken on April 22, 2015 shows a part of a gas installation at a gas-pumping station on the gas pipeline in the small town Boyarka on April 22, 2015 in the Kyiv region.
