After the gas conflict: Economic consequences for Russia, Ukraine, and Germany

Roland Götz

No 8/2006, SWP Comments from Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs

Abstract: In January 2006, the conflict between Russia and Ukraine over future gas prices, which had escalated by the end of 2005, was settled for the time being with a compromise. While the Russian company Gazprom has benefitted from the agreement, the reputation of Russia as a reliable energy supplier has been damaged. The case raises some additional questions: What strategy will Gazprom pursue in the post-Soviet area? Is Russia in a position to exert pressure on its European customers? What can the European Union, and in particular Germany, do to improve energy relations with Russia? (SWP Comments / SWP)

Date: 2006
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