| | | Russian war crimes in Ukraine have made global headlines, but the systematic damage being inflicted on the Ukrainian economy by Putin’s invasion also requires urgent international attention. In a recent address to the EU’s Economic and Financial Affairs Council, Ukrainian Finance Minister Sergii Marchenko provided details of the “catastrophic” costs of the conflict so far, while also calling for greater international economic support for Ukraine and tougher sanctions measures against Russia.
Speaking on April 5, Marchenko shared a number of data points that illustrated the scale of the economic damage done to Ukraine during the first 40 days of the Russian invasion. According to Marchenko, Russian forces have methodically targeted transport, energy, and industrial infrastructure across the country, resulting in damage amounting to hundreds of billions of dollars. Around 30% of all Ukrainian businesses have been forced to cease activities entirely, while many more have had to dramatically downgrade operations due to limited access to resources or markets.
Marchenko also noted the negative impact of the Russo-Ukrainian War on the global economy. In particular, he underlined the growing international food security issues arising from Putin’s invasion. This emphasis on agriculture comes as no surprise given Ukraine’s status as the world’s number one sunflower oil exporter and leading grain supplier, with an estimated 400 million people globally dependent on Ukrainian grain.
Over the past decade, Ukraine has consolidated its position as an emerging agricultural superpower and key contributor to global food security. With the bulk of Ukrainian agricultural exports now unable to reach international markets, the consequences are expected to be widespread and severe. Countries from North Africa to South America will feel the loss of Ukrainian agricultural produce, with price hikes on basic commodities and food shortages potentially fuelling social unrest and political instability.
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