By Margarita M. Balmaceda

Energy has develop into a tremendous point to Russia's makes an attempt, lower than Putin, to revive its impression over former Soviet territories and reaffirm itself because the dominant local energy. This publication investigates how Russia has manipulated the strength of its neighbours on Russian power offers to accomplish its international coverage ambitions, focusing particularly on kinfolk with Ukraine. This e-book, according to a mess of fundamental Ukrainian and Russian basic resources beforehand now not dropped at the eye of Western readers, examines very important occasions similar to Russia's January 2006 suspension of fuel provides to Ukraine, and the results for Ukraine's 'Orange Revolution', different post-Soviet states and Western Europe. in spite of the fact that, it is going additional in exhibiting how household political stipulations in non-Russian states may perhaps facilitate Russia's use of strength as a international coverage weapon, investigating the neighborhood teams that frequently obtain major gains from permitting Russia to manage strength markets and effort transit chances. With ecu international locations changing into extra established upon Russian strength, this e-book could be of curiosity not just to Russian experiences and japanese eu stories specialists, yet to students of diplomacy and ecu politics.

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Extra resources for Energy Dependency, Politics and Corruption in the Former Soviet Union: Russia's Power, Oligarchs' Profits and Ukraine's Missing Energy Policy, 1995-2006 ... Series on Russian and East European Studies)

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In late January–February 2006, for example, when public outcry mounted in Ukraine over the January gas agreements with Russia, and these agreements seemed under threat of being canceled, Russia put pressure on Ukraine through other policy areas—for example, by provoking a confrontation on the use of a lighthouse in the Crimea area leased by the Russian Black Sea Fleet, and banning the importation of Ukrainian meat and milk products. This is interesting because it shows how other aspects of the bilateral relationship have been used to attain desired outcomes in the energy area.

If in March 2002 Kuchma spoke of full membership in the EEC, after facing strong protests at home he changed to proposing associate membership and, by December 2002, to rejecting membership altogether. 53 In September, 2003—despite the objections of several ministers—Kuchma, together with the presidents of Russia, Kazakhstan, and Belarus, signed an agreement (ratified in April 2004) on the later establishment of a SES including a free-trade zone and a customs union. Yet problems with ratification by parliament meant the agreements remained unlikely to be implemented.

And it is in Ukraine that that we see the largest number of potential rent-acquisition opportunities in the energy trade area, and the largest revenue potential in energy rent-seeking. In the Ukrainian case, the possibilities for profit-making in conditions of energy dependency have been plentiful—from opportunities created by barter and other deals used to pay for imports of Russian energy, to energy companies (both local and Russian) using energy debt to gain control over forcedto-become-insolvent companies unable to pay their energy bills, to the state assuming responsibility for private traders’ unpaid energy debts vis-á-vis Russia, to non-transparent privatization deals, to outright stealing from the state.

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