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The total losses for Ukraine’s economy because of the war amounted to $600 billion

Losses from the war. The most affected are residential buildings (39%) and infrastructure (33%). Photo: AP

Losses from the war. The most affected are residential buildings (39%) and infrastructure (33%). Photo: AP

The total losses for Ukraine’s economy because of the war, both direct and indirect (GDP decline, investment cessation, outflow of labor, social support), range between $564 billion and $600 billion.

According to the analytical estimation by the Kyiv School of Economy (KSE), since the beginning of the war between Russia and Ukraine, documented damage to residential and non-residential buildings, as well as other infrastructure, amounted to over $95.2 billion.

This is represented by analytical data on the official website prepared for the Ukraine Recovery Conference in Lugano, Switzerland.

The total indirect losses inflicted on Ukraine's economy are estimated at $126.8 billion, or UAH 3.7 trillion.

As of June 13, the total amount of damages to residential and non-residential buildings and other infrastructure amounted to over $95.5 billion (UAH 2.6 trillion).

Residential buildings (39% or $36.8 billion) and infrastructure (33% or $31.3 billion) make up the largest share of the total damages. Damages to business assets amount to at least $8 billion and are growing rapidly. Another $4.3 billion represents damages to the agricultural sector.

The total amount needed for the reconstruction of the economy and infrastructure destroyed in Ukraine is $165 billion. Infographics: KSE

The total amount needed for the reconstruction of the economy and infrastructure destroyed in Ukraine is $165 billion. Infographics: KSE

Damage to public sector facilities — social facilities and institutions, educational, scientific, and healthcare institutions, cultural and sports facilities, and administrative buildings, amounts to about $6.7 billion.

The regions most affected are those regions of Ukraine where hostilities directly took place:

  • Donetsk region — 25% of damages in monetary terms;
  • Kharkiv region — 18%;
  • Luhansk region — over 13%;
  • Mykolaiv region — 9%;
  • Zaporizhzhia region — 7%;
  • Kyiv region — 7%;
  • Chernyhiv region — 6%.

Damages are estimated at the replacement cost (market value of an appropriate analogue that could be purchased before the military aggression, at the $/UAH exchange rate as of December 31, 2021).

According to the estimation by the KSE team, the total amount needed for the reconstruction of the economy and infrastructure destroyed in Ukraine is $164.9 billion (UAH 4.8 trillion). At the same time, the estimation of the need for recovery does not take into account the total losses of the economy from the war (loss of GDP, investment, labor, etc.).

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