Ukraine Faces an Energy Dilemma

Ukraine's dispute with Russia over energy prices has been intensifying, raising fears in Kiev that another natural gas cutoff is possible and prompting the Europeans to intervene. Ukrainian Energy Minister Yuri Prodan said April 11 that Ukraine plans to take Russia to court over what it deems as unfair natural gas prices, and EU Energy Commissioner Gunther Oettinger said the bloc would help Ukraine in paying its natural gas bills to Russia. While the Europeans have supported Ukraine rhetorically in the country's standoff with Russia over energy, it is unlikely that they will be able to finance the country sufficiently given the price Russia has set. Russia will use its energy supplies and the threat of a cutoff as a means of getting the West to negotiate on broader political issues in Ukraine — not just those related to energy.