How war effects Ukraine economy? Budget analysis

How war effects Ukraine economy? Budget analysis

In the occupied part of Ukraine there are almost 85% of coal, 45% of gas, 33% of industrial production of the country.

How much the war cost?

The prime minister of Ukraine Arseniy Yatsenyuk announced that the one day of the war cost for Ukraine from 2 to 7 million USD per day. This include Equipment (for example an average equipment for one soldier cost about 3000 USD ),  military hardware, petrol, medicine, food, repairmen etc.

There are 824 000 people who had to leave their houses as the cause of the war. And government suppose to give them money (whether it is happening or no in the reality we can just guess but still it reduces money from the budget).

Mobilization

Until now in Ukraine were three waves of partly mobilization. Simply speaking, man from 18-45 years old (ordinary soldier or non-commissioned officers) or 50-60 years old (officers personal), were obliged for it. So government need to pay them some money also. On the other point f view we are losing qualified specialists what is making our economy more down.

Unemployment 

First of all, unemployment causes people from the east region where their workplaces were simply destroyed. Secondly there were a lot of factories (we are calling them Russian-orientated) which lost most of their orders from Russia and simply stop working.

Lugansk International Airport

Investment

Investments are big part of economy. But now nobody wants to invest on such an unstable environment. Nobody knows what will be next and how their company will look like in a few days.

I would like to introduce some numbers of the Ukrainian loses as well:

•       Administrative buildings (schools, hospitals, etc.)-370 million USD

•      Destroyed buildings: Donetsk-4740 houses, Lugansk- more than 700 houses with total cost-111 million USD

•      Roads(962km), Bridges(24), Railways, Heating and Water systems-260 million USD 

•   Pipelines and gas infrastructure-41 million USD

•      Out of 93 mines just 24 are working

•    More than 600 factories were destroyed and their reconstruction can take billions or USD.

And this is just a part of Ukrainian loses. Now I am talking just about economy part, but what about that soldiers who were killed, or regular citizens.

Right now Ukrainian economy has a big gap.  How and when the country will get out of this nobody knows. But the most important step right now is to make peace and stop killing each other.