Ukraine lost 100 billion USD in infrastructure

The governor of the National Bank of Ukraine said that the Russian campaign had destroyed $100 billion worth of infrastructure, half of the country’s GDP.

“The economic loss is enormous,” Kyrylo Shevchenko, governor of the National Bank of Ukraine (NBU), said in an online interview today with the Japanese newspaper Asahi Shimbun.

According to Shevchenko, since Russia launched a special military operation in Ukraine, many roads, bridges and houses have been constantly attacked with bombs and missiles, causing infrastructure damage equal to about half of the gross national product. domestic (GDP). Ukraine’s GDP in 2021 will reach about 200 billion USD.

The governor of the NBU estimated that the country’s GDP “could be reduced by at least a third in 2022”, and affirmed that Ukraine cannot rebuild if it relies only on domestic reserves.

Still, Shevchenko said banks and companies remained resilient, with 78% of banks’ branches in Ukraine reopening. According to a survey conducted by the NBU of about 20,000 Ukrainian companies, 32% of them stopped working in early March, but the proportion dropped to 17% by the end of April.

According to Mr. Shevchenko, this result is a positive signal and the NBU is also optimistic. “We want to see how the fighting progresses,” he said.

Two residents walk past a destroyed apartment complex in the southern port city of Mariupol, Ukraine, on March 31.  Photo: Reuters.

Two residents walk past a destroyed apartment complex in the southern port city of Mariupol, Ukraine, on March 31. Image: Reuters.

The Ukrainian government says it loses about $5 billion a month in the short term. The NBU set up a special account to donate to Ukrainian forces after the outbreak of hostilities. “We have mobilized more than 500 million USD to transfer to the army to serve the needs of the war,” Governor Shevchenko said.

Ukrainian President Volodymyr Zelensky said on April 27 that the total damage of Ukraine since Russia launched the military operation is about 600 billion dollars and urgently needs to prepare a reconstruction plan.

“Hundreds of factories and factories were destroyed, causing great damage. About 2,500 km of roads and nearly 300 bridges were damaged. These are not just statistics, it’s the ruins of Mariupol, Volnovakha, Okhtyrka, Chernihiv. , Borodianka and dozens of our other cities, villages and towns,” Zelensky said.

On May 11, German Chancellor Olaf Scholz also warned that explosives left over from fighting in cities could cause consequences for Ukraine in the next 100 years.

Duc Trung (Theo Asahi)

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