Ukraine’s Position in Eurasian Transport of Oil and Natural Gas

The thesis focuses on theoretical and empirical analysis of oil and natural gas flows in Eurasia and maps Ukraine's transit position in the regional oil and gas supply chain. The aim of the thesis is to objectively evaluate possibilities of Eurasian energy integration by enlargement of the European energy market further to the East and to prospect Ukraine's involvement into a new geopolitical energy alliance, driven by EU. This dissertation builds up on economical, geographical, historical and political premises of markets integration as well as system approach of energy alliances development. It argues that (i) energy integration on contrary to traditional economic stream can be explained by system approach and geopolitical stream of energy expansionism; (ii) EU infrustructural oil and gas projects imply deeper integration of EU member-states with involed non-members and (iii) Ukraine's oil and gas transit status within Eurasian region facilitates its growing involvement into EU energy intiatives guided by the European rules. The thesis is organized into three chapters. The first one is predominately theoretical and seeks to summarize current theoretical approaches towards integration and trends of energy markets in Eurasia. The second chapter introduces the role of oil and gas transport capacities and Ukraine's transit status in resolving disparities of Eurasian energy supply chain. The third chapter describes condition of Ukrainian oil and gas infrastructure and tackles issues for reformation of national oil and gas transit pipelines. Securing access to energy supplies has been a driving factor of global development since the industrial revolution. Increasing demand for oil and gas has undermined energy and economic security of world centers. In Eurasia Europe and Asia has been competing for fossil fuels originating from Russia, Middle East and Central Asia. Since recently Eurasian energy security problem is being solved by development of new supply routes. These infrastructural projects are initiated by oil and gas consumers, suppliers and transitors competing over control in the infrastructure. Such competition destabilises Eurasian relations, leads to energy "wars", political conflicts and increases supplies disruption risks. To secure stability of energy supply chain producers, transitors and consumers of oil and gas resources should integrate, closely cooperate and jointly invest into improving the existing supply routes and efficiency of fuels consumtion, production and transportation. Oil and gas should be traded for technologies and capital securing control in the infrustucture of mutual interests. Development of further bilateral and multilateral tools of joint interest would also help in resolving energy related contradictions of the participating parties. The leading role in driving energy integration in Eurasia belongs to the EU being the most mature and advanced integration grouping in Eurasia. EU realises TEN-e projects and from recently a common foreign energy policy aimed to strengthen external cooperation with oil and gas suppliers and transitors, including Ukraine. Since 1970s Ukraine has been an important oil and gas transitor for Russian and Central Asian oil and gas to Europe. Ukrainian pipelines intermediate 10 % of oil and 50 % of gas imports of Europe. To counterbalance Russian energy diplomacy over Ukraine, EU is supporting Ukraine's efforts in such energy alliances as INOGATE or GUAM. Ukraine's recent accession to the South Eastern-European Energy Community should improve stability of gas and oil supplies to Europe and facilitate reformation of national transit capacities