CNBC: Ukraine 'desperately concerned' Russia could soon attack its gas pipeline – expert

19:57, 21 February 2018
Economy
511
REUTERS

"The Ukrainians are desperately concerned about the Nord Stream 2 project, as it would remove the logic of Russia steering clear of attacking their gas pipeline," Ian Bremmer, Eurasia Group founder and president, said in a research note published Monday, February 19, according to CNBC.

"Germany's not impressed by those concerns, and economic interests lead the way," he added.

Kyiv is also worried that Nord Stream 2 could mean it is subsequently cut off from gas transit fees.

Read alsoReuters: Merkel believes Nord Stream 2 poses no energy security threatGeorg Zachman, senior fellow at the Brussels-based think tank Bruegel, said in a blog post last month that be believed Nord Stream 2 would "undoubtedly be bad for Ukraine."

He estimated that the completion of the project could cost Ukraine up to $2 billion a year, largely because of significantly lower gas transit revenues. That would amount to approximately 2% to 3% of Ukraine's gross domestic product (GDP).

Moscow's ability to shut off natural gas supplies, which it has done during past pricing disputes, is a long-standing concern for several other European states.

Nordic countries have also expressed security concerns over the Nord Stream project as the pipeline is laid near their shores. The pipeline is scheduled to become operational in 2019.

The Nord Stream 2 gas pipeline is an $11 billion project directly connecting Germany with Russia. Critics argue that the pipeline, which is to be laid under the Baltic Sea, will increase Europe's dependence on Russian gas.

If you see a spelling error on our site, select it and press Ctrl+Enter