ASSESSMENTS

Russia's Nord Stream Pipeline Weakens Ukraine's Position

Sep 7, 2011 | 16:52 GMT

GEORGES GOBET/AFP/Getty Images

Summary

Amid ongoing negotiations between Ukraine and Russia over natural gas prices, Russia's Nord Stream natural gas pipeline has become operational. Ukraine hopes to convince Russia to lower the prices that Kiev pays for natural gas, as the current arrangement — struck by former Ukrainian Prime Minister Yulia Timoshenko — has been judged to be against Ukraine's interests. However, in past talks with Russia, Ukraine has often depended on its status as a transit state for Russian natural gas traveling to Europe. The Nord Stream pipeline has taken much of that leverage away from Kiev.

While Ukraine tries to negotiate with Russia for lower natural gas prices, Russia's Nord Stream pipeline will strip Kiev of some of its leverage as a transit state....

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