The Russian invasion has already cost Ukraine about $1,000 billion (1,012.39 billion euros). Oleg Ustenko, economic adviser to Ukrainian President Volodimir Zelensky, said Thursday at an event organized by the German Council for Foreign Relations, a think tank in Berlin.
Rutger LuitenSource: BELGA
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This concerns both direct and indirect costs related to the Russian invasion on 24 February. The amount corresponds to “five times the annual GDP”.
Zelensky’s economic adviser added that Ukraine is currently facing a budget deficit of “about €5 billion a month”. “Instead of 7 billion on an annual basis, it is now 5 billion per month,” said Oestenko. The budget deficit could thus rise to 40 billion dollars (40.5 billion euros) by 2023.
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Income is also falling sharply because certain companies have been reduced to ashes or others are unable to bear full steam.
The Ukrainian government expects the economy to shrink by 35 to 40 percent this year as a result of the war, the official said. That is the deepest decline in GDP since 1991, he said.
Ukraine requested a new aid program from the IMF in August. The World Bank estimated on 9 September that the cost of rebuilding the country was already about 350 billion euros. An amount that continues to increase every day as the war continues.