An adviser to President Volodymyr Zelensky said in a statement in Berlin that the cost of the Russian invasion, which began on February 24, to Ukraine is estimated at about one trillion dollars.
“In the first days of aggression, the Russians destroyed our $100 billion assets,” Oleg Ustenko, the economic adviser to the President of Ukraine, said at a conference organized by the German Council on International Relations.
“This value is much higher now. We’re talking about direct and indirect costs approaching one trillion dollars right now,” he added, the equivalent of “five years of GDP.”
For the current year, Ukrainian authorities “expect a significant decline in GDP, estimated between -35% and -40%, the most significant decline in our GDP since 1991,” Ustenko complained.
According to Zelensky’s adviser, the budget deficit will increase by about $5 billion per month.
“We are managing $5 billion a month instead of $7 billion (deficit) a year,” he complained.
The consultant said the deficit could reach $40 billion in 2023.
In addition to the detriment and cost of military resistance to the Russian occupation, Kyiv can no longer count on tax revenues.
“Obviously, when you’re in such situations, knowing how you can collect and get the revenues for the state budget is a big problem for public finances,” he said.
“Some companies were destroyed by the Russians. Others do not work every day or are not working at full capacity,” Ustenko said. “This means that the budget will undoubtedly take much less than originally planned”.
In August, Ukraine asked the IMF for a new aid program that should be part of a broader international effort led by the United States and the European Union.
The World Bank put the cost of rebuilding the country at $350 billion on September 9, but noted that the figure is expected to “increase in the coming months as the war continues.”
source: Noticias
