With temperatures consistently below freezing, many residents in the Eastern European country of Ukraine, and in fact many other European nations, found themselves with a worrying problem last week. Due to a disagreement between governments and gas supply companies in Kiev and Moscow, the Russian gas supply, on which so many millions depend, was cut.
On the surface the disagreement may appear simple.


Russian gas supply companies were demanding that the Ukrainian government pay market price for its gas. This may sound a reasonable demand ? but not if you are the Ukrainian government who would be faced with cost increase of over 200%, or an increased gas bill of $3 billion a year.

However, many skeptics in the region this that the crisis may actually be more closely aligned with the rather checkered history between the two countries, and more specifically the recent presidential result that saw the pro-western Viktor Yushchenko elected over his more Moscow aligned opponent Viktor Yanukovych. The election was a dirty one, with a second vote ordered by the Ukraine Supreme Court after allegations of widespread corruption, vote rigging, and even attempted poisoning!

An independent state until the mid-eighteenth century, Ukraine was then absorbed into the Russian Empire. A brief window of independence following the fall of Tsarist Russia, was unfortunately followed by a long period of rather brutal Moscow rule as part of the Soviet Union.

Upon its collapse, Ukraine, as with many other ex-Soviet states has struggled with political instability as Moscow tries to continue its influence over its recent territories. The fact that many other soviet relic states still enjoy highly subsidized gas prices is seen as evidence that Moscow may in fact be punishing Ukraine for its recent election result.

To the relief of many citizens the governments in Kiev and Moscow have come to a rather complicated agreement where Russia will receive the payment they demanded, but in return Moscow will pay a similar amount to Kiev in compensation for the 80% of Russian gas production that uses Ukrainian pipelines to reach European consumers. Residents have temporarily avoided a cold winter, but relations between the two governments have become decidedly chilled.

Tom is a Geography teacher in Auckland, New Zealand. He enjoys watching all sports, reading, and travel.