The current dispute between Russia and Ukraine over 2009 gas prices marks the fourth time since the Orange Revolution that Moscow and Kiev have tried to sign a contract. Each time, the process has been trumped by a hydra of hidden agendas and political intrigues, with far-reaching implications for consumers. Gazprom prices, scaled to its customers, are pegged to a basket of oil prices with a six-month lag. Embedded in the price for Ukraine, however, are transit fees for downstream exports to Europe. When concessions are made for the transit rate, calculated per 100 km of 1,000 cubic meters of […]

Slovenia’s decision to effectively block Croatia’s entry to the E.U. on the basis of an unresolved border dispute represents a dangerous precedent that, if copied, could damage or destroy the chances of other accession hopefuls in southeast Europe. Because of the Slovenian veto in late December, Croatia was able to open only one new “chapter” — representing a policy area in which it must prove that it meets EU norms — out of an expected 10, and close three, instead of the five foreseen, in the latest round of its ongoing accession negotiations. It is not the first time an […]