Open source
The implementation of the of the Nord Stream 2 gas pipeline project bypassing Ukraine may lead to a loss of 2.5-3% of the country’s GDP.
This is stated in the information on fiscal risks and their potential impact on the state budget in 2019, which is published on the website of the Ministry of Finance.
«The implementation of the Nord Stream 2 project will result in losses due to a decrease in exports of services by about 2.5-3% of GDP [only direct losses],» – the document says.
The document also lists other main risks for the country’s financial stability, including the implementation of tax reform in the US, which could lead to an outflow of financial resources from emerging markets due to the need to cover the US budget deficit, given the Fed interest rate increase [the rate of the federal reserve system – ed.] as a reaction to active fiscal incentives.
The Ministry of Finance also points to the threat of escalation of the military conflict in the east of the country, which will have unpredictable consequences for the economy.
As The Journalist reported, Poroshenko believes Nord Stream-2 gas pipeline is a geopolitical tool to pressure Western Europe.
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