Elly Rostoum
The Russia-Ukraine standoff shows no signs of diffusing after more than five months of conflict that have so far involved Russian troops on the ground, a change in government and constitution in Ukraine, and heightened tensions between Moscow and Washington. Recently, these tensions have resulted in economic sanctions against Russian government officials and companies close to Putin and the Kremlin. The nature of the current sanctions targets the high-tech military export to Russian, which President Obama deemed “[in] appropriate to be transferred in the current environment.” The move is largely meant to undermine Moscow’s attempts to replace critical military components that have traditionally been produced in Ukraine.
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Because of these dynamics, the importance of the Ukraine to energy flows within the EU and Eurasia regions can hardly be overstated. According to the U.S. Chamber of Commerce Institute for 21st Century Energy’s International Index of Energy Security Risk, Ukraine is the least energy secure country among the top 25 energy consuming countries, with an overall risk 114 percent above an average of OECD countries. In its second edition this year, the U.S. Chamber’s Energy Institute’s International Index of Energy Security Risk provides insights into energy security risks across different countries since 1980. The risk index calculates scores for the United States and 24 other countries against a baseline composed of OECD countries. According to Stephen Eule, Vice President at the U.S. Chamber’s Energy Institute, “the Ukraine is one of the few countries that has seen its energy security risk score decline since the mid- to late-1990s, both absolutely and relative to the OECD baseline average (from 296% above the OECD average in 1996 to 114% above in 2012). The country’s scores are still so high, however, that much greater progress will be needed for the Ukraine to break out of the bottom position. It has not moved out of the 25th spot since 1992, the first year data for the country became available.”
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