Former Chief of the General Staff of the Ukrainian Armed Forces Viktor Muzhenko stated that Russia controls about 50% of Ukraine’s resources, which allowed it to offset the costs of the war. This includes gas deposits, mineral resources, and agricultural potential in temporarily occupied territories. The economic losses from such scale of seizures significantly affect the country’s defense capability and development.
According to the Institute for the Study of War (ISW), as of November 30, 2024, Russia had occupied 17.99% of Ukraine’s territory, amounting to 2,656 square kilometers. This has led to significant economic losses, including a three-fold decrease in steel production and a quarter reduction in arable land. The total losses are estimated to be in the tens of billions of dollars.
Irreversible Losses
According to the Kyiv School of Economics, the largest direct losses were inflicted on residential buildings (37.5% or $58.9 billion) and infrastructure (23.4% or $36.8 billion). The losses of enterprise and industry assets amount to at least $13.1 billion, while losses in the agricultural sector and land resources are $10.3 billion.
Is There a Future for Ukraine?
Muzhenko emphasizes that the loss of 50% of Ukraine’s natural resources presents serious challenges for the country’s economy and defense capability. He highlights the need to strengthen international support and effectively utilize available resources to counter the aggressor and regain control over the occupied territories.
Overall, the situation requires concerted efforts at both domestic and international levels to ensure economic stability and strengthen Ukraine’s defense potential.
