Ukraine's next crisis? Economic disaster

Parliament has also adopted a bill approving the joint-venture lease of Ukraine's gas-transit facilities with Western firms.

At the same time, however, Kiev passed a new amendment to the tax code that doubles taxes for private gas producers and promises to keep Western investors as far away from Ukraine as they can get.

Each move is designed to negate the other. The economy is being destroyed, yet Kiev is itself destroying any chance of bringing in Western investment to prop it up. Western firms are invited to invest in Ukraine, while at the same time Ukraine makes a mockery of transparency and ensures that the investment climate is suddenly even less attractive than it was two weeks ago. Lip service is paid to developing more resources to build energy independence, but a new tax doubles costs for private producers who will stop producing and pick up stakes.

It's hard not to conclude that Energy Minister Yuriy Prodan is working hard to discourage new investment in the energy sector.