Ukraine chose Russia and turned away from an association agreement with the European Union. A reversal in which gas played a key role, as always in relationships between Kiev and Moscow.
Act One : Ukraine which dependents on gas sold at high prices by Gazprom, the unofficial Russian Foreign Ministry, announces a diversification of its supply (purchase in Germany via Poland, Adriatic Gas Corridor project).
Act Two : Gazprom threats to close the tap if the huge Ukrainian debt incurred is not settled.
Act Three : Kiev turns it’s back to Brussels and argues that an agreement with Europe would have resulted in higher gas prices for its customers according to the IMF recommendations.
Gas reserves (in trillion cubic meters) and the TAP project (in red)
Trans Adriatic Project
Yet Europe seeks to remedy its Russian gaz addiction. Nabucco pipeline project was finally buried but it’s rival TAP validated recently aims to bring gas from the Caspian sea instead. LNG, whose projects are increasing globally, would also relativize the importance of Russian pipes. Gazprom is also in the crosshair of Brussels , which launched in 2012 a procedure for abuse of dominant position.