16.7 C
New York
Thursday, September 29, 2022

Latest Posts

Cost for Ukraine of Russian invasion estimated at 1 billion dollars

- Advertisement -

The cost to Ukraine of the Russian invasion, triggered on February 24, is estimated at around $1 trillion, an adviser to Volodymyr Zelensky said in Berlin on Thursday.

“In the first days of the aggression, the Russians destroyed $100 billion of our assets,” stressed the economic adviser to the Ukrainian president, Oleg Ustenkoat a conference organized by the German Council for International Affairs.

- Advertisement -

“This amount is now much higher. We are talking about direct and indirect costs that today approach 1 trillion dollars”estimated, that is, the equivalent of “five annual GDP”.

For the current year, the Ukrainian authorities “they expect a significant reduction in our GDP”Estimated “between -35 and -40%, that is, the largest decrease in our GDP since 1991″Ustenko lamented.

The budget deficit would thus increase, according to this counselor Zelenskyin “about US$ 5,000 million a month”.

- Advertisement -

“Instead of having US$ 7 billion (deficit) throughout the year, we manage 5 billion a month”, lament.

In 2023, the deficit could reach US$40 billion, the adviser stressed.

A dog walks near the rubble of the destroyed Mykolaiv Oblast governor’s building following a missile attack in Mykolaiv on August 17, 2022, amid Russia’s invasion of Ukraine. (Photo by BULENT KILIC / AFP)

In addition to the damage and the cost of military resistance to the Russian invasion, kyiv can no longer count on tax revenue.

“Obviously, when you are in these kinds of circumstances, it is a big problem for public financing to know how it will be able to collect and receive the income for the state budget,” he explained.

Some companies weredestroyed by the Russians. Others do not work all day or they work but not at full capacity”Ustenko said. “This means that the budget will certainly receive much less compared to what was initially planned”he detailed.

In August, Ukraine asked the IMF for a new aid program, which was to be part of a broader international effort led by the United States and the EU.

On September 9, the World Bank estimated the cost of reconstruction at US$350 billion, specifying that it should “increase even more in the coming months as the war continues.”

Source: Gestion

- Advertisement -

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.