Ukraine’s gift and curse

By Simon Moores
Published: Monday, 23 August 2010

Some of Europe’s richest mineral resources lie in the middle of an energy resources super-highway from Russia into Europe. This route has given Ukraine an abundance of cheap gas that has underpinned its economy. It is an asset that has attracted many, and one that could be its undoing

Cheap energy, namely gas, has been Ukraine’s strongest lure since the break-up of the Soviet Union. Businesses and homeowners alike have enjoyed prices that are a fraction of the cost paid by the rest of Europe.

The country’s close relationship with Russia has yielded cut-price energy in return for a...

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