Encouraging Resilience

January 2007 | Risk Summary

Ukraine has made important progress of late in ties with both Russia and the West. Russian President Vladimir Putin has made his first visit to Ukraine in two years, while parliamentary approval of the last World Trade Organisation legislation opens the way for WTO entry in 2007. Going forward, less frosty relations with Russia should allow for a more gradual rise in gas import costs to market levels. But this will be accompanied by pressure for concessions, such as on control of Ukraine's gas pipeline network and a go-slow on key aspects of the pro-Western drive, notably NATO

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