Ukraine farm sector has lost $38 bln since Russian invasion - analysts

Ukraine is a major global grain grower and exporter
calendar icon 2 March 2023
clock icon 2 minute read

The Ukrainian agricultural sector has suffered almost $38 billion in direct and indirect losses from Russia's invasion, Reuters reported, citing analysts from the Kyiv School of Economics (KSE) on Thursday.

Ukraine is a major global grain grower and exporter but large areas of its east, south and north have been fought on, occupied and mined since the invasion just over a year ago.

Using data from the state statistics service, agriculture ministry, World Bank, satellite imagery and companies, the KSE analysts said direct losses to the Ukrainian farm sector had reached around $7.8 billion by Jan. 1 this year.

This figure, they said, included losses of $3.8 billion from the destruction of equipment, $1.2 billion from damage to silos and $1.9 billion from ruined agricultural products.

KSE estimated that indirect losses -- including from lost output, reduced exports, higher production costs and the remediation of damaged soil -- were around $30 billion.

Ukraine has sharply reduced the area sown with 2023 winter wheat to around 3.8 million hectares, from more than six million hectares in 2022, because of the Russian invasion.

Ukraine's wheat harvest declined to 20.2 million tonnes in 2022 from 32.2 million tonnes in 2021. Overall grain output fell to around 54 million tonnes from a record 86 million in 2021.

The economy ministry has said the grain harvest may fall to 49.5 million tonnes in 2023, and analysts have said the crop could drop to 35-40 million tonnes.

($1 = $1.0000)

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