You are Vladimir Putin and I claim my five pounds.

I'd suggest the reality goes something like this:

Russia: Wants to regain what it considers as its rightful place as a world superpower. In doing this it wants to regain a measure of control over at least eastern europe. It's therefore flexing its energy weapon and trying to intimidate into getting others to agree with it, or else. It also needs the cash that higher prices would bring and doesn't like the current depressed state of world trade.

Ukraine: Has little in the way of power, but wants to remain independent from its larger neighbour and realises the transit pipelines are a good mechanism. It simply considered any gas going through the pipe as its first, with any excess going to europe. It will pay a little cash for the gas, but as for market rates, forget it.

Europe: Considers both russia and ukraine as squabbling children with gangster pretensions. It wishes both would learn the game of international trade and grow up. It also probably thinks it can get the gas via other sources and is metaphorically tapping its foot and wondering when those communist twits are going to learn the customer is always right.

All are probably mistaken to a degree, about the reality and the beliefs of the others. Next step? Blowing up some pipelines.