KIEV, July 29. /ITAR-TASS/. Commissioning of the South Stream pipeline by Russia can reduce Ukrainian gas transit by 60 billion cubic meters, state company Naftogaz of Ukraine Chairman of the Board Andrei Kobolev told ICTV on Tuesday.

“Now transit is already 86 billion cubic meters against the previous 110-120 billion. It has already dropped because of Nord Stream,” he said.

Once South Stream is constructed, Ukraine “can find itself in a very difficult situation”.

“The absence of partners is the key problem. The Ukrainian gas transportation system (GTS) can now be estimated at $25-35 billion. Without transit, the figure will be less, probably half as much,” said Kobolev.

In the first half of the year, Naftogaz reported 17% less revenue from Russian gas transit to European Union countries than a year earlier (9.03 billion hryvnias, or $750 million).

According to the company’s statements, Russian gas transit through Ukraine dropped 7% in physical terms year-on-year to 36.571 billion cubic meters from 39.353 billion cubic meters. In the reporting period, the company sold on the domestic market 15.814 billion cubic meters worth 30.443 billion hryvnias ($2.54 billion) against 15.796 billion cubic meters worth 31.994 billion hryvnias ($2.66 billion) a year earlier.

Naftogaz of Ukraine is the country’s major vertically integrated oil and gas company that produces more than 97% of oil and gas in Ukraine. The company also transports oil and gas and sells petroleum products through its own network of fuelling stations.