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World Bank: $56 billion needed to restore Ukraine's agricultural sector

16 Feb, 2024
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World Bank: $56 billion needed to restore Ukraine's agricultural sector

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The losses and damages suffered by Ukraine's agricultural sector as a result of the full-scale invasion amount to approximately $80.1 billion.

This assessment was provided by the World Bank in its report on the losses from the war and the needs for Ukraine's recovery as of December 2023.

In particular, the losses of the agro-industrial complex (AIC) from the destruction of the Kakhovka Dam, partial or complete destruction of storage facilities, fisheries, and aquaculture, multi-year crops, forced slaughter of livestock, as well as destruction and theft of production resources and products are estimated at $10.3 billion.

"The damage to machinery and equipment accounts for the largest share of the total volume of losses (57%), followed by theft of production resources (18%) and damage to warehouse premises (18%)," the document specifies.

According to the World Bank's calculations, as of December 2023, this damage increased by only 18% compared to February 2023, as most assets located in active combat zones had already been damaged during the first year of the war.

Furthermore, Ukraine's agricultural sector lost another $69.8 billion from reduced harvests (49% of total losses), decreased purchase prices for export-oriented goods (35% of losses), reduced production of livestock products (8%), increased production costs (6%), decreased production of perennial crops (1%), and losses from fishing and aquaculture (1%).

"Compared to the February 2023 estimates, these losses have more than doubled," noted the World Bank.

At the same time, the needs for the reconstruction and restoration of Ukraine's agricultural sector are estimated at $56.1 billion over a period of 10 years.

According to the World Bank, $10.7 billion is required for the restoration of water resources and irrigation systems, while humanitarian demining in Ukraine will cost $34.6 billion.

The Odessa Journal

The Odessa Journal

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