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Ukraine has already lost $280 billion due to Russian aggression

Price of Russian aggression for Ukraine is $280 billion over 2014-2020. Photo: The Page

Price of Russian aggression for Ukraine is $280 billion over 2014-2020. Photo: The Page

Over the 6 years of Russia's military aggression—from 2014 to 2020—Ukraine as a whole lost $280 billion in the form of non-produced GDP. The experts from the London Center for Economic and Business Research (CEBR) has come to this conclusion.

Russian aggression, according to estimates, annually costs Ukraine 19.9% of its pre-conflict GDP—up to $40 billion. CEBR considers that the annexation of Crimea alone costs the Ukrainian side $8.3 billion in annual terms. The war in Donbas deprives Ukraine of $14.6 billion every year.

Experts stress that the Kremlin's aggressive policy has undermined investor confidence in the Ukrainian economy. This, in turn, resulted in a loss of investments in the amount of $72 billion, or up to $10.3 billion per year. The decrease in exports cost the country as a whole up to $162 billion between 2014 and 2020. CEBR assesses the total loss of capital in Crimea and Donbas from lost or destroyed assets at $117 billion.

The war with the Russian Federation also dealt a blow to the Ukrainian financial sector. During the reporting period, losses from tax revenues were estimated at $48.5 billion. And if military spending from 2014 to 2020 is added to this amount, Ukraine, according to the experts, could spend more than $63.3 billion on other "non-military purposes".

Context. The Economist previously predicted what a new Russian invasion of Ukraine would cost the world. According to the outlook, both the energy and commodity markets will experience a huge impact.

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