Losses of the agricultural sector of Ukraine from the war exceeded $80 billion

Specialists of the Food and Land Use Research Center of the Kyiv School of Economics, together with World Bank experts, calculated the losses of the Ukrainian agricultural sector. According to their conclusions, farmers suffered more than $80 billion in direct damages and losses as a result of the full-scale invasion.

Currently, in particular, the total value of destroyed assets is $10.3 billion. The largest category of damage is mutilated agricultural machinery. It amounts to $5.8 billion or 56.7% of all losses. It is known that about 181,000 units of agricultural machinery and equipment were partially or completely damaged as a result of the invasion. At the same time, experts estimated the damage from the theft or destruction of produced products at $1.97 billion, and the losses due to damage to granaries - $1.8 billion. In addition, the losses, which include the lost income of agricultural producers and the increase in the cost of production, amounted to $69.8 billion .

Therefore, taking into account the scale of damage and losses, the total needs for reconstruction and recovery over the next 10 years are $56 billion. Priority needs for 2024 are $435 million, most of which is already covered by donor funding.

Let's add that in turn, the Government of Ukraine together with the World Bank Group, the European Commission and the UN published a report on the updated joint assessment of damages and needs that arose as a result of the large-scale invasion of Russia. In particular, the total costs for the recovery of Ukraine during the next decade are forecast at the level of 486 billion US dollars. This is almost 3 times higher than the nominal GDP of Ukraine for 2023. The results of the evaluation form the basis of planning documents and methods of setting priorities. The said assessment covers the damage caused during the almost two-year period from the moment of the full-scale Russian invasion of Ukraine on February 24, 2022 to December 31, 2023. According to the report, direct losses in Ukraine have so far reached almost 152 billion US dollars, with housing, transport, trade and industry, energy and agriculture identified as the most affected sectors. As in last year's report, Donetsk, Kharkiv, Luhansk, Zaporizhzhya, Kherson and Kyiv regions were recognized as the most affected regions.

The Government emphasized that the key needs of Ukraine for 2024 are 3.1 billion dollars for the restoration of housing and utilities, 2.3 billion dollars for transport and logistics, 2.7 billion dollars for energy, 2.4 billion dollars for social infrastructure, and another 3.6 billion dollars for the restoration of industry and the service sector. Thus, Ukraine is estimated to need $15.3 billion for critical recovery projects in 2024 alone.