Ukraine lost $100 billion in infrastructure

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

“The economic damage is enormous,” Kyrylo Shevchenko, governor of the National Bank of Ukraine (NBU), said today in an online interview 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, resulting in infrastructure damage equivalent to about half of gross national product (GDP). The GDP of Ukraine in 2021 will reach about 200 billion USD.

The NBU governor estimated that the country’s GDP “could be reduced by at least a third by 2022” and reiterated that Ukraine could not rebuild relying solely on domestic reserves.

Still, Shevchenko said banks and businesses remained resilient as 78% of bank branches in Ukraine reopened. According to a survey conducted by the NBU among some 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, March 31.  Photo: Reuters.

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

The Ukrainian government says it is losing about $5 billion a month in the short term. The NBU established a special account for donations to the Ukrainian Armed Forces after the outbreak of hostilities. “We have mobilized more than USD 500 million to transfer to the army to meet the needs of the war,” Governor Shevchenko said.

Ukrainian President Volodymyr Zelenskyy said on April 27 that the total damage to Ukraine since the start of the military operation by Russia is about $600 billion and that a recovery plan needs to be drawn up as a matter of urgency.

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

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

Duc Trung (Corresponding Asahi)