Ukraine's direct losses from the implementation of the Nord Stream 2 project may amount to about 2.5-3% of GDP.
This is stated in a report released by the Finance Ministry of Ukraine titled “Information on Fiscal Risks and Their Potential Impact on the National Budget in 2019”.
The report, in particular, lists the factors that can create risks for the country's economic development, including the intensification of the military conflict in the east of Ukraine, an increase in the exchange rate and price fluctuations in the country, the growing import expansion of European goods in the domestic market, and the implementation of the Nord Stream 2 gas pipeline project.
Ukrainian Ministry of Finance has also highlighted that the implementation of the Nord Stream 2 project will increase the role of Germany as a “gas hub” for consumers from Western and Central Europe.
We should remind you that Nord Stream 2 project envisages the construction of a 1220-kilometer gas pipeline from Russia to Germany through the Baltic Sea with a capacity of 55 billion cubic meters per year. On September 5, the project’s operator embarked on laying the pipeline in the exclusive economic zone of Finland. The building of the trunkline is expected to =be completed by late 2019.
