Abstract

The article explores the impact of the EU and Russia on domestic change in the gas sector in Ukraine. It seeks to identify the barriers to, and triggers for, Ukraine’s alignment with EU rules against the backdrop of Ukraine’s energy dependence on Russia by focusing on the institutionalization of energy relations. By studying the whole post-Soviet period, this article provides a comprehensive overview of the interplay of domestic and external factors shaping the energy sector in Ukraine and illuminates the often paradoxical effects of external influences on domestic actors’ preferences and strategies. We argue that EU influence was ineffective in overcoming domestic barriers to reforms and that it was Russia’s coercive actions that have led to the adoption of EU rules by Ukraine, despite powerful domestic vested interests and the weaknesses in EU’s policy.

Highlights

  • The energy sectors in the countries in the post-Soviet states in Europe are characterized by simultaneous flows of energy resources and rules: Russia exports hydrocarbons whereas the European Union (EU) promotes regulatory frameworks

  • The Hirschman effect is not merely caused by asymmetries in economic relationships per se, but, in particular, by the ways in which this dependence impacts on smaller states’ preferences: one of the key factors of influence is ‘the strength of the vested interests which A has created by its trade economics of B’ (Hirschman 1980, 18)

  • After the Russian leadership tabled their proposals for the acquisition of Naftogaz, the EU Energy Commissioner stated that a takeover of Ukraine’s Gas Transportation System (GTS) would be a purely bilateral matter between Ukraine and Russia – even though it would contradict EU’s policy toward Ukraine, as it would spell the end of the adoption of EU rules on the gas market, including unbundling (Shapovalova 2010)

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Summary

Managing the Flows of Gas and Rules

DOI: 10.1080/15387216.2016.1174072 License: Creative Commons: Attribution (CC BY) Document Version Publisher's PDF, also known as Version of record Citation for published version (Harvard): Wolczuk, K 2016, 'Managing the Flows of Gas and Rules: Ukraine between the EU and Russia', Eurasian Geography and Economics, vol 57, no. 1, pp. 113-137. https://doi.org/10.1080/15387216.2016.1174072

Kataryna Wolczuk
Kataryna Wolczuk*
Introduction
Political economy of the energy sector
Findings
Conclusions
Full Text
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