Ukraine has one of the most energy-intensive economies in the industrialized world. While energy consumption has dropped since the country's independence, reliance on imports, particularly on gas from Russia, has not declined. This dependence increases risks for security of supply. As tension between Ukraine and its main energy supplier has grown in recent years, the country's energy policy is driven by a strong desire to improve domestic energy security and reduce natural gas imports. Energy transit through the Ukraine is significant. Due to its geographic position, the country plays a major role in securing Europe's energy needs: 84% of Russian gas supplies to Europe transit through Ukraine via pipeline. This report addresses how Ukraine can meet its energy challenges. Three priority areas for action identified are: energy efficiency, cost-reflective pricing, and transparency. Efficiency represents not only Ukraine's single best opportunity to improve energy security but is also vital for the country's growth and development. The review covers all aspects of the energy sector, such as energy demand, the policy framework, and sub-sectors including energy efficiency, oil, gas, coal, electricity, district heating and renewable energy.