ASSESSMENTS

Ukraine's Economy Needs Russia

Feb 18, 2015 | 10:03 GMT

Ukrainian's Economy Needs Russia
A statue of former Russian leader Vladimir Lenin stands in front of a Sberbank sign in Lenin Square in Donetsk, Ukraine.

(JOHN MACDOUGALL/AFP/Getty Images)

Summary

Despite Russia's annexation of Crimea and fighting in Ukraine's east, Ukraine and Russia remain economically intertwined. Kiev has lobbied Western governments to impose sanctions on Russian companies and advocated reducing dependence on Russia natural gas imports. However, Ukraine's banking and energy sectors are tied to Russia, giving the Kremlin several options with which to influence Kiev.

And both Kiev and Moscow are aware of the possibilities and risks of dependency....

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