Governance

The chapter discusses the EU as an actor in global energy, and shows that the EU – short of a strong set of policy tools – relies more than other players on exporting its own rules. It explores the areas in which the Commission is capable of exerting (regulatory) external power in the energy sector and assesses the Commission's actions with regards to the challenges facing the EU along the energy value chain: upstream, midstream and downstream.

Finance Minister of Ukraine and HKS alumna, Natalie A. Jaresko MPP 1989, participated in a conversation with Future of Diplomacy Project Faculty Director R. Nicholas Burns titled “Ukraine: Making Change Happen” on September 23. Minister Jaresko commented on the current state of economic reforms and debt restructuring in Ukraine, pairing her incisive analysis with descriptions of personal experiences working at a high-level in governments in both the US and Ukraine.

The outgoing EU Trade Commissioner Karel de Gucht delivered an address entitled “Trade and Geopolitics: T-TIP, Ukraine and beyond” and led a discussion with students and experts on September 11. Commissioner de Gucht discussed some of the major political obstacles for European member states in balancing protectionist policy with mutually beneficial objectives.

As tensions in Ukraine continue to rise, G7 countries have decided to impose new sanctions on Russia. Sanctions targeting the energy sector, which account for roughly 25 percent of Russian GDP and half the country's budget revenues, have increasingly gained support. Yet, energy sanctions are not the way to go, as the price will be too high—not for Russia, but for Europe. Instead, policy strategies should aim at disentangling energy from indisputable security aspects surrounding the Ukraine crisis.