Russian strikes on ports could cost Ukraine up to 2% of GDP — Bloomberg
Kyiv • UNN
Due to Russian attacks, Ukraine could lose up to $2.5 billion this year. The ports of the Odesa region usually handle around 90% of Ukraine’s grain exports by sea.
As a result of Russian strikes on Ukraine’s port infrastructure, Ukraine could lose 1.8% of its GDP this year and 2.1% in 2027, according to an estimate by Oxford Economics. This was reported by UNN, citing Bloomberg.
Details
It is noted that the ports of the Odesa region usually handle about 90% of Ukraine’s seaborne grain exports. Due to regular Russian strikes, transportation volumes have sharply declined, creating problems for farmers and the economy as a whole.
This year, the country could lose up to $2.5 billion due to the export blockade. This could trigger mass bankruptcies of farms, undermining morale in the country’s rural areas
It is noted that agricultural products account for more than half of Ukraine’s export revenues, so the prolonged disruption of port operations directly affects foreign-currency inflows and the country’s financial stability. And because of limited export opportunities, Ukrainian farmers are forced to keep grain in storage or sell it at significantly lower prices.
We remind you
The European Union refused to provide Ukrainian farmers with €220 million in non-repayable aid over Russian attacks on Black Sea ports.