Ukraine's Economy May Lose Up to 3% GDP Due to Nord Stream 2 - Finance Ministry

"The implementation of the Nord Stream 2 project may lead to losses of about 2.5-3-percent of GDP due to a decrease in the export of services," the Ukrainian Finance Ministry said.

The ministry also believes that the implementation of the project will strengthen the role of Germany as a "gas hub" for consumers in Western and Central Europe.

The Nord Stream 2 project envisages the construction of two gas pipelines that will run from Russia, through the Baltic Sea and to a hub in Germany, bypassing Ukraine entirely. The project is a joint venture of the Russian Gazprom energy giant with French Engie, Austrian OMV AG, UK-Dutch Royal Dutch Shell, and German Uniper and Wintershall.

READ MORE: Nord Stream 2 Operator Laid Over 18 Miles of Pipes in German Waters — Spokesman

The project has been welcomed by some countries in Europe, such as Germany and Austria, and opposed by others, including Ukraine, which may suffer transit revenue drops if Nord Stream 2 becomes operational.

Russian President Vladimir Putin said in May that Russia will not halt the transit of gas through Ukraine if this remains cost-effective.