Direct losses in Ukraine's agricultural sector due to the war with Russia have exceeded $11 billion

Ukrainian Minister of Agrarian Policy Vitaliy Koval, referring to information from the World Bank, emphasized that direct losses in the country’s agricultural sector from the war with Russia have surpassed $11 billion. Overall, according to him, total losses, including indirect ones, amount to 80 billion.  

As noted in this regard by the Ministry of Agrarian Policy, a total of $524 billion is needed for the recovery of Ukraine. Priority areas include housing, energy, critical infrastructure, and the agricultural sector. There is a specific need for funding irrigation systems and water resources, which currently requires an additional $700 million.

In general, the total losses of $80 billion include not only direct losses but also consequences related to disruptions in logistics, the need for land reclamation and demining, rising prices for fertilizers and fuel.

It should be noted that since the beginning of the full-scale invasion of Russia into Ukraine, our country has suffered colossal losses due to infrastructure destruction. According to estimates from the Kyiv School of Economics (KSE), the total amount of direct losses has reached nearly $170 billion. This figure continues to rise due to ongoing missile attacks and combat operations. The most affected area is Ukraine's transport infrastructure, with total losses in this sector estimated at $38.5 billion. Currently, more than 26,000 kilometers of roads have been destroyed or damaged, amounting to $28.3 billion. Rail transport has incurred losses of $4.3 billion, port infrastructure $0.85 billion, and the aviation industry has lost $2 billion. Additionally, losses in the agro-industrial complex amount to $10.3 billion. Over 130,000 units of agricultural machinery have already been lost, and 4 million tons of grain storage facilities have been destroyed or damaged.

It is noted that, according to estimates from the World Bank, $55 billion is sufficient for the recovery of Ukraine's agricultural sector over 10 years. Specifically, $15 billion is needed for the implementation of climate-smart technologies, $10 billion each for investment grants and the development of the value-added chain in the agricultural sector, and $7.2 billion will be required for agricultural machinery and equipment, according to specialists. Furthermore, the World Bank estimates that $3.25 billion is needed for loan compensation for farmers and $3 billion for government support programs in agriculture.