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Ukraine is always a topic of interest to me, as I wrote my PhD dissertation in 1995 on the independence of Ukraine, and I have little to add on your description of the overall situation.
On the gas situation, I'll refer you to my recent front page stories on various pipelines, one of which was the Ukrainian gas situation: http://www.eurotrib.com/story/2005/12/16/72028/741. I don't think the Russians will manage to increase the price of gas shipped to Ukraine. In the long run, we're all dead. John Maynard Keynes
I read your article, and absolutely agree that Ukraine does have certain bargaining power in its negotiations with Gazprom. Currently, over 110 billion cubic meters (BCM) of Russian gas exports to the EU are transported via Ukraine, compared with 30 BCM via Belarus. Even the second Yamal-Europe pipeline, which doubles its transit capacity, does not change much, until Gazprom and Poland resolve their differences as to the exact route of the European part of the pipeline.
Nevertheless, politically, it will be harder now for Ukraine to siphon off transit gas to meet its internal demand. Anyway, I am sure that some kind of compromise between Ukraine and Gazprom will be achieved.
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