Has Ukraine scored an own-goal with its transit fee proposal?

The issue of gas transit through Ukraine remains a crucial commercial and political concern, given the current debate over the future of Nord Stream 2 and the gradual approach of 2019, when the current contract between Gazprom and Naftogaz will expire. In this short note we examine Naftogaz’s latest tactic, which has been to increase the Ukraine transit tariff in the short-term while promising a more competitive fee once its pipeline system has been amortised. ….