• Russia's invasion has cost Ukraine "a trillion dollars," according to a Kyiv official

    International
    Russia's invasion has cost Ukraine "a trillion dollars," according to a Kyiv official

    Digital Desk: Russia's invasion of Ukraine has caused nearly $1
    trillion in damage, according to a Kyiv government official, as the war
    continues to wreak havoc on the country's economy.



    According to Oleg Ustenko, President Volodymyr Zelensky's
    economic advisor, Ukraine has suffered "somewhere close to $1
    trillion" in damages in terms of "direct and indirect costs."



    Ustenko stated at a German Council on Foreign Relations event in
    Berlin that the figure was equivalent to five times Ukraine's annual GDP prior
    to the February invasion.



    The official previously estimated that invading Russian forces
    caused around $100 billion in damage in the first two weeks of the war.



    The destruction and displacement caused by the conflict posed a
    "significant problem for public financing," according to Ustenko.



    Many businesses that had not been destroyed were "not
    operating at full capacity or are only operating for a few hours per day,"
    he said.



    "It means that the budget will receive far less than was
    initially anticipated."



    Despite drastic cuts in government spending, the Ukrainian
    government has been running a monthly deficit of five billion euros ($4.9
    billion) since the invasion, according to Ustenko.



    Kyiv expects the gap to close to around 3.5 billion euros by
    2023.



    Allies have rushed to fill the void with aid, with the World
    Bank, European Union, and G7 countries pledging billions of dollars.



    According to Ustenko, the Ukrainian government expects the
    economy to contract by 35 to 40% this year.



    According to him, the drop was the "deepest decline in
    our GDP that we have experienced since 1991" and the establishment of the
    modern Ukrainian state.






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