Energy Security for Ukraine and Europe
Reforming Ukraine's energy sector is vital for the future of Ukraine's economy and security. Ukraine narrowly averted national bankruptcy following the global financial crisis. But Ukraine's economic recovery depends on reforming the energy sector, which has suffered severe politicization since the 1990s leading to non-transparent business operations and mega-corruption.
European concerns about secure gas supplies from Russia, via Ukraine, have become the overarching policy matter on the current EU-Ukraine agenda. To strengthen Ukraine's energy sector, the new Ukrainian president should start abandoning domestic subsidies for oil and gas prices and let the price reach global market levels. The energy sector must also improve its business transparency significantly in order to encourage foreign capital investment.