MOSCOW, Russia -- Ukraine's decision to host a Russian naval base for 25 more  years in exchange for cheaper gas, ratified Tuesday despite a brawl over it in  the Ukrainian parliament, does little to alter the immediate military balance in  the Black Sea but presents other challenges for U.S. goals in the  region.
Secretary of State Hillary Rodham Clinton has played down the significance of  the pact, saying it should be seen as part of an effort by Ukraine's new  president, Viktor Yanukovych, to improve ties with both Russia and the United  States in a "balancing act" that "makes sense to us."
But analysts say  the deal could hurt Western efforts to support Ukraine's fitful democratic  transition, both by allowing it to postpone reforms of its corrupt energy sector  and by provoking another round of infighting in the country after years of  political instability.
Some also warn that the deal could boost those  determined to restore Russia's influence over its neighbors and complicate NATO  plans to use the Black Sea as a base against potential foes in the Middle East  and Central Asia. The Pentagon, for example, has considered putting part of its  missile shield against Iran on ships in the Black Sea.
Russian Prime  Minister Vladimir Putin, visiting Kiev before the ratification vote, hailed the  deal as a breakthrough in ties with Ukraine and emphasized how much money Russia  was giving up to keep its fleet in Sevastopol, on the southern tip of Ukraine's  Crimean Peninsula.
"The proposed price seemed absolutely exorbitant," he  said, saying the discount amounted to $40 to $45 billion in savings for Ukraine.  "It would be possible to build several bases with this money, but for us, this  is an issue of cooperation with Ukraine rather than just the financial  aspect."
But Ukraine, which has been battered by the global recession and  is seeking an IMF bailout, most likely would not have been able to pay the  prices Russia had been asking for natural gas.
As a result, critics say,  Ukraine could have negotiated a discount without extending the base lease,  originally set to expire in 2017, especially since it owns the pipelines that  Russia uses to deliver the gas it sells to Europe.
The deal gives Ukraine  about 30 percent off the prices set in the contract it signed with Moscow last  year, after a standoff during which the Kremlin cut gas supplies to Europe. But  that contract set prices so high that the newly negotiated discount brings them  down only to current market levels, said Edward Chow, a senior fellow at the  Center for Strategic and International Studies.
"They gave something --  extending the naval base lease -- in order to get what they were really entitled  to from the beginning," he said of the Ukrainians, noting that Russia had  already renegotiated contracts with other customers in Europe and given them  discounts because of falling demand and prices.
The new agreement, Chow  argued, is the latest in a series of deals that have benefited powerful  industrialists in Ukraine and allowed the country to avoid cleaning up its  corrupt gas sector, believed to be a source of funds for politicians. Like those  before it, he added, the new deal is so flawed it is unlikely to last long and  could again threaten the supply of gas to Europe.
For example, he said,  the pact requires Ukraine to buy more gas in subsequent years, perhaps more than  it needs. But it doesn't require Russia to continue using Ukraine's pipelines, a  key source of income for Kiev. The Kremlin plans to build new pipelines that  circumvent Ukraine.
David Kramer, a former George W. Bush administration  official now at the German Marshall Fund, said the deal could "feed some of the  worst instincts in Russian psychology" about the former Soviet Union, especially  after an uprising in Kyrgyzstan toppled a government opposed by the  Kremlin.
"They may feel they're on a roll, and usually before too long,  the Russians overplay their hand and do it in an unhelpful, unproductive way,"  Kramer said. But he added that he is more worried about the polarizing impact of  the deal on Ukrainian politics, which could make it difficult for Yanukovych to  govern effectively.
The intensity of emotions over the decision to extend  the Russian lease until 2042 was evident Tuesday as fistfights broke out in  parliament and opponents set off smoke bombs and threw eggs at the speaker. But  Yanukovych's slim majority prevailed, allowing him to push through a new budget  without a sharp rise in utility fees and clear the way for the IMF  loan.
The new lease has also caused concern in other countries on the  Black Sea, especially Georgia, which Russia defeated in a brief war in 2008.  Although the Russian fleet is in poor shape, Moscow plans to upgrade it with  Mistral-class helicopter carriers from France.
Radu Tudor, a defense  analyst in Romania, one of three NATO allies on the Black Sea, said the  Russians' extended presence in Sevastopol poses less of a military problem than  a political one.
"They continue to see security as they did in the Cold  War, with NATO as the enemy," he said. "So it's going to be much harder now to  transform the Black Sea from a Russian lake into a NATO sea."
 
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