Ukraine is embroiled in another round of Gas confrontation with Russia over non payement of gas consumed by Ukraine. In spite the fact that Ukraine's gas supply is subsidised by Russia and is half the cost of Gas supplied to other European countries Ukraine has not paid its bill. Russia's Gazprom has had to once again take the inevitable task of restricting gas supply to Ukraine as a result.
This action of last resort has prompted allegations of Russia seeking to punish Ukraine for its political stance. The decision of Russia to phase out energy subsidies has not been made overnight and whilst some are quick to claim it is all about polictics.
Russia Today's Peter Lavelle presents a summary review as the new year dawns.
see also Foreign Notes for some further insights into Ukraine's gas wars.