Ukraine estimates damage caused by Russian invasion at $565 billion

KYIV, Ukraine — The Ukrainian government estimates the economic losses from the Russian invasion, which has been underway for just over one month, at nearly $565 billion.

Economy Minister Yulia Svyrydenko says on Facebook that the $564.9 billion estimate includes immediate damage plus expected losses in trade and economic activity.

“It should be noted that every day the numbers change and unfortunately they are increasing,” says Svyrydenko, who is also a deputy prime minister.

Damage to public and private property — with Russian forces resorting to fierce bombardments that have leveled some cities as their invasion, which began February 24, has stalled — is the biggest element.

Svyrydenko says public infrastructure losses — including damaged roads, railways and airports — total $119 billion, while damage to private property including housing is up to $90.5 billion.

Damages and losses suffered by private firms is put at $80 billion.

Svyrydenko estimates gross domestic product in 2022 will be down by $112 billion, which would be a drop of more than 55 percent of Ukraine’s economic activity last year.

Ukraine’s government will likely miss out on $48 billion in tax revenue, or just about all of what it was expecting to take in this year.

Meanwhile, $54 billion in foreign direct investment will likely not materialize.

Svyrydenko says Ukraine’s government will seek to confiscate Russian assets seized in the country as compensation.

“Ukraine, despite all the obstacles, will seek to exact compensation payments from the aggressor,” she says.