1) Ukraine's gas market is ineffective and unstable due to a lack of competition, rule of law, and diversification of supply sources. Naftogaz has a near monopoly. 2) Reforms are needed to build an effective gas market, including increasing domestic production, reducing subsidies, and improving conditions for foreign investors and private companies. 3) A reformed gas market would feature multiple import and distribution companies, including Russian and European firms, and Naftogaz would focus on production but still supply parts of the market.