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Ukraine reports new economic damage from hostilities with Russia

Ukrinform.net news website on April 3 cited the latest published data of the Ministry of Economy Ukraine indicates the total direct damage to Kiev to date due to the conflict with Russia up to 565 billion USD.

Ukraine’s Deputy Economy Minister Ihor Diadiura stated: “According to our latest estimates, direct damage now amounts to $565 billion, of which $119 billion is in infrastructure and $91 billion in physical damage. Due to the conflict, Ukraine has lost 54 billion USD of investment capital.”

In addition, the conflict also has lasting effects. According to calculations by the Ministry of Economy of Ukraine, this year’s loss to the country’s GDP will amount to at least 112 billion USD.

According to Mr. Diadiura, Ukraine will take many years to recover the economy. Ukraine’s Economy Ministry estimates a GDP decline of 16% in the first quarter, while the annual decline could be around 40% of GDP.

First Deputy Minister of Economy of Ukraine Denys Kudin also said: “The most affected areas are those that cannot work remotely. Especially, at present, areas such as air transport, air transportation. Ukraine’s maritime and port infrastructure is barely functioning.”

Earlier, Ukraine’s Finance Minister Serhiy Marchenko announced that international partners have given Ukraine more than 2 billion USD and 1 billion EUR since the conflict broke out.

For his part, Ukraine’s Prime Minister Denys Shmyhal said that the country cannot win the conflict without economic potential because it needs to provide for its defense needs, pay social benefits, wages and salaries. ensure the operation of the entire military apparatus.

In Ukraine, more than 1,000 companies have decided to move out of conflict zones, and more than 300 of these have been relocated since fighting broke out in late February.

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