Forbes: In Ukraine Crisis, Russia's Natural Gas Tactics Could Backfire

Russia could conceivably use natural gas as a means to force Ukraine and its allies in Brussels to see things Moscow’s way, but a halt of of gas flows does not appear to be imminent…yet.

This week, Russia’s state-owned natural gas company, Gazprom, said it would renege on a deal to provide gas to Ukraine at a steep market discount. Ukraine has been getting Gazprom gas for around $268.50 per thousand cubic meters instead of around $420. The goodwill came with a price. Ukraine’s president at the time, Viktor Yanukovych, rejected a trade deal with the European Union in favor of developing closer ties with Russia. Exactly what those ties were remain unclear, but cheaper gas was one of them. Russia also threw in a $15 billion aid package. But since Yanukovych left Kiev and pro-Western Arseniy Yatsenyuk took over in the interim, the two countries appear more like enemies than friendly neighbors.

Europe is in the middle. The way Moscow sees it, the E.U. caused this mess by trying to pull Ukraine out of Russia’s historic sphere of influence.  MORE