Impact of the EU Energy Markets Transformations on the Ukrainian Economy

Abstract

As a result of Russia’s full-scale war against Ukraine, Ukraine is experiencing destruction of its energy infrastructure and is forced to move away from the clean energy model in production and consumption. Moreover, the whole Europe has become one of the most affected regions, having suffered serious energy, economic, and political consequences. Therefore, the analysis of the mutual influence of energy changes in the EU on the economy of Ukraine is important for the establishment of an effective economic and energy policy that will facilitate the adaptation of the Ukrainian economy to global and regional energy transformations. In this regard, the purpose of this research is to establish the features, patterns, and tendencies of changes occurring on the EU energy markets and assess their influence on the economic development of Ukraine. This study explores the profound impact of the EU energy market transformations on Ukraine’s economic landscape, highlighting opportunities and risks in light of geopolitical tensions and global energy changes. Key areas include Ukraine’s integration into the EU’s energy systems, prospects for renewable energy and challenges in policy adaptation amid the ongoing conflict and infrastructure damages. The analysis highlights the urgency of modernizing Ukraine’s energy infrastructure to align with EU standards and implement green energy strategies. The research is carried out applying the comparative analysis, structural-logical, dialectical, generalization, and statistical data processing methods. As a result, the main trends of energy markets transformations in Europe are determined, which are related to a radical change in the European gas market structure, acceleration of the transition to renewable energy sources, reduction of final energy consumption, changes in price regulations on energy markets, filling of gas storage facilities, aggregate demand, and joint purchase of energy resources. In accordance with each established direction of transformation of the EU energy markets, the consequences of such changes for the Ukrainian energy system are determined and the risks associated with the reorientation of global trends in the energy market are identified. Accordingly, the consequences of such changes for the Ukrainian energy system are determined and the risks associated with the reorientation of global trends on the energy market are identified.