Vast amounts of energy resources have equipped Russia with powerful means of influence on energy dependent Ukraine. This essay places Russia’s current energy policy towards Ukraine into a broader theoretical perspective. Drawing on the work of John Mearsheimers theory of Offensive Neorealism and Joseph. Nye’s theory of Hard and Soft Power, the essay explains why and how Russia as regional hegemon use its energy weapon to build regional spheres of influence. How Russia chooses to use its energy resources depends on the level of external pressure. Essays analysis shows that the essays chosen theories goes a long way to explain the overall pattern of Russia’s energy policy toward Ukraine from 2004-2014. The thesis concludes that Russia was in fact using its energy resources as a geostrategic foreign and security policy instrument.