Energy Game

The future of Ukraine, Moldova and Belarus, states lying between the European Union and Russia, to a large extent depends on how they resolve their energy-related problems. They are in a special situation because, on the one hand, they are the principal transit countries for Russian resources (gas and oil) that make their way to the EU market, and on the other, they greatly depend on the supplies of gas and oil from Russia, which is of key importance to them, for example because of their economies’ high level of energy consumption. Therefore, these countries must find the answer to several questions: How large should Russia’s shares of their energy sectors be? To what extent should they integrate with the EU in energy matters? How long can they remain ‘between’ the EU and Russia? More than a decade’s experience shows that the countries between the EU and Russia find it extremely difficult to define themselves in energy matters. Often, the lack of a considered strategy can be seen, and casual benefits gained by those in power and various interest groups take precedence. (Introduction)