The Cabinet of Ministers estimates Ukraine’s losses due to the war at more than $ 1 trillion
Ukraine’s losses because of a full-scale war unleashed by Russia already exceed $ 1 trillion. This amount covers both the damage already inflicted on Ukraine’s infrastructure and economy, and the losses in the coming years.
The Prime Minister of Ukraine Denys Shmygal said this in an interview.
The losses, calculated indirectly, taking into account the losses in the coming years, amount to more than a trillion dollars, – the head of government said.
Shmygal clarifies that this calculation is still expert, but the amount of losses is structured by three components:
1. Direct infrastructure damage. These are losses from the destruction of bridges, roads, housing and other buildings in Ukraine by the enemy. The Prime Minister said that the figures for these losses are growing every day.
Now our estimate is about $ 120 billion. If we take into account military infrastructure and other civilian expenses, then – more than $ 270 billion, – Shmygal said.
He reminded that a register of damaged property had been created to record and calculate losses. Part of it will operate through the Diya service, where everyone will be able to register the damage caused to their housing.
2. Losses of Ukraine’s economy. We are talking about the fall in GDP during the months when the fighting will continue in our country.
It is the unearned profit and not invested investments of our enterprises. According to our estimates, this amount is over $ 290 billion, – Shmygal explained.
That is, for these two components, the loss at the beginning of March is estimated at more than $ 560 billion (direct losses).
3. Ukraine’s losses due to declining GDP in the long run. These are the revenues that our state will no longer receive due to the destruction of Ukrainian enterprises by Russian invaders.
Before the war, we had plans for how our economy would grow. Now the enterprises that are supposed to bring income to the state have been destroyed. Therefore, after the war, of course, there will be a significant adjustment, – the Prime Minister said.
Shmygal estimated the fall in Ukraine’s GDP because of the war at 35% or more.
In 10 regions, not everything is simple. There are companies that accounted for about 50% of GDP. At the beginning of the war, the IMF predicted a decline of about 10%. We see that now, when the hostilities are taking place, and the first shock since the beginning of the war has not passed, according to our estimates, it is a fluctuation of 35% and a little higher, – he said.
In the future, according to the head of government, everything will depend on how the Ukrainian economy and business recover, as well as on the export industries, where there is a reorientation from sea routes to railways.
In mid-March, Denys Shmygal reported that, according to preliminary estimates, $ 565 billion would be needed to rebuild Ukraine after the war with Russia.
On March 26, the Minister of Development of Communities and Territories of Ukraine Oleksiy Chernyshov announced the scale of the destruction caused by the enemy. At that time, there were about 4.5 thousand houses, about 100 factories, enterprises, about 400 educational institutions and 150 health care institutions.
