• Research
  • Diwan
  • About
  • Experts
Carnegie Middle East logoCarnegie lettermark logo
LebanonIran
{
  "authors": [
    "Dmitri Trenin"
  ],
  "type": "commentary",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Carnegie Russia Eurasia Center"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Russia Eurasia Center",
  "programAffiliation": "",
  "programs": [],
  "projects": [],
  "regions": [
    "Russia",
    "Eastern Europe",
    "Ukraine",
    "Western Europe"
  ],
  "topics": [
    "Political Reform",
    "Foreign Policy",
    "Global Governance"
  ]
}

Source: Getty

Commentary
Carnegie Russia Eurasia Center

Paying for Ukraine

If Ukraine is allowed to become a failed state, the consequences for Europe will be serious, even dire. Making sure that Ukraine keeps itself warm this winter is an absolutely necessary step.

Link Copied
By Dmitri Trenin
Published on Oct 20, 2014

If Minsk was about halting the fighting in Donbass, Milan has been essentially about ensuring uninterrupted supply of Russian gas to the European Union via Ukraine. It appears that Europe will likely guarantee the supply, by having agreed to pay Kiev's past debt and new gas bills to Gazprom. Moscow, for its part, has conceded on the price it charges for gas used by Ukraine. Much of the discussion in Milan has evidently centered on the intricate schemes to be used for payment. As a result, the transit gas purchased by the Europeans will not be diverted en route by the Ukrainians; Ukraine will get Russian gas paid for by the EU; and Russia will get the money.

This is good, but not good enough. Even if Ukraine will not freeze this winter, the conflict in Donbass probably will. The battle lines are solidifying and turning into de facto borders. Ukraine has finalized legislation about a special administrative status of the rebel-held territories, but the rebel leaders resolutely reject the option of returning to Ukraine. Donetsk and Lugansk will miss out on the elections to the Ukrainian Rada next Sunday, and will hold their own parliamentary poll next month. David Cameron, in Milan, has quoted Vladimir Putin as still referring to the rebel-held region as part of Ukraine. But even if President Vladimir Putin really wishes for such an outcome, this is not the direction that things have taken on the ground.

It will be up to Russia to bail out the part of Donbass which its friends hold and would not give up. Coming on top of the Crimea commitment, and in the context of the Western sanctions, which are more likely to be toughened than eased, caring for a couple of million more people in a depressed and war-devastated region with an unrecognized status and murky conditions on the ground will not be easy. The European Union, however, will have to take care of Ukraine as a whole, with its 40-plus million residents, a ruined and heavily indebted economy and complex political and social environment. The cost of the required effort is anyone's guess. EU member Greece, with its 10 million people, recently needed 240 billion euro to avoid default. 16-million-stong East Germany, on the other hand, has used 1.5 trillion over 25 years, to integrate into the Federal Republic.

Ukraine, of course, is not an EU member, nor is it going to become one soon. Yet, if it is allowed to become a failed state, the consequences for Europe will be serious, even dire. Making sure that Ukraine keeps itself warm this winter is an absolutely necessary step, but much, much more will be needed on top of that. This is the harsh reality one has to face up to.

About the Author

Dmitri Trenin

Former Director, Carnegie Moscow Center

Trenin was director of the Carnegie Moscow Center from 2008 to early 2022.

    Recent Work

  • Commentary
    Mapping Russia’s New Approach to the Post-Soviet Space

      Dmitri Trenin

  • Commentary
    What a Week of Talks Between Russia and the West Revealed

      Dmitri Trenin

Dmitri Trenin
Former Director, Carnegie Moscow Center
Political ReformForeign PolicyGlobal GovernanceRussiaEastern EuropeUkraineWestern Europe

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Malcolm H. Kerr Carnegie Middle East Center

  • people watching smoke rising at sunrise from rooftops
    Commentary
    Emissary
    Bombing Campaigns Do Not Bring About Democracy. Nor Does Regime Change Without a Plan.

    Just look at Iraq in 1991.

      Marwan Muasher

  • Commentary
    Diwan
    Iran and the New Geopolitical Moment

    A coalition of states is seeking to avert a U.S. attack, and Israel is in the forefront of their mind.

      Michael Young

  • Commentary
    Carnegie Politika
    Baku Proceeds With Caution as Ethnic Azeris Join Protests in Neighboring Iran

    Baku may allow radical nationalists to publicly discuss “reunification” with Azeri Iranians, but the president and key officials prefer not to comment publicly on the protests in Iran.

      Bashir Kitachaev

  • Commentary
    Diwan
    Iran’s Woes Aren’t Only Domestic

    The country’s leadership is increasingly uneasy about multiple challenges from the Levant to the South Caucasus.

      Armenak Tokmajyan

  • A municipal employee raises the US flag among those of other nations in Sharm el-Sheikh, as the Egyptian Red Sea resort town gets ready to receive international leaders, following a Gaza ceasefire agreement, on October 11, 2025.
    Article
    The Tragedy of Middle Eastern Politics

    The countries of the region have engaged in sustained competition that has tested their capacities and limitations, while resisting domination by rivals. Can a more stable order emerge from this maelstrom, and what would it require?

      • Mohamed Ali Adraoui

      Hamza Meddeb, Mohamed Ali Adraoui

Get more news and analysis from
Malcolm H. Kerr Carnegie Middle East Center
Carnegie Middle East logo, white
  • Research
  • Diwan
  • About
  • Experts
  • Projects
  • Events
  • Contact
  • Careers
  • Privacy
  • For Media
Get more news and analysis from
Malcolm H. Kerr Carnegie Middle East Center
© 2026 Carnegie Endowment for International Peace. All rights reserved.