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@h2o
Russia gave Ukraine a discount on its gas in return for hosting the Black Sea fleet. Then built a pipeline around Ukraine to reduce its transit revenue, and is building another to deny it transit revenue entirely. The second pipeline, South Stream, the Russians browbeat all the transit states into accepting really unfavourable terms. The EU is now trying to unpick all the crap in the intergovernmental agreements with the transit states to make it less shit. It's all a big power play. Russia wants to keep a sphere of influence to act as a buffer between it and the EU. Ukraine is a big part of the game.