Ukraine warns of the loss of a third of its economy since the start of the war

Follow live the latest news about the war in Ukraine

2 Feb. () –

The Prime Minister of Ukraine, Denis Shmigal, has warned this Thursday that the losses due to the war represent a third of the Ukrainian economy and has lamented an increase in inflation of more than 26 percent.

Shmigal explained that the economy has fallen by more than 30 percent over the last year and stressed that many companies “have been destroyed”, such as the Azovstal steelworks, which was the target of strong attacks by the russian forces.

However, he stressed that despite this fall, the Ukrainian economy has also received tax revenue “since companies have wanted to help support the Army” in the fight against Russian forces.

“All the taxes collected have gone to the Armed Forces and the other half has been delivered by our allies, especially Germany,” he explained before thanking Berlin for its help, according to information from the Ukrinform news agency.

Regarding the reconstruction work once the war ends, Shmigal has estimated that the costs could amount to figures between 600,000 and 750,000 million euros. In this sense, he has emphasized that these tasks “should not fall on the shoulders of European or American taxpayers” but that “it must be the aggressor who pays for the damage and loss of human life.”

“The damages and losses must be compensated with Russian assets frozen abroad, amounting to between 350,000 and 500,000 million euros. In Ukraine, assets frozen in two Russian banks amount to approximately 423,000 million euros,” he said.