The Costs of War in Ukraine.

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Ukraine’s war efforts are costing the country on the brink of default a staggering $7-$10 million per day ($2.55-$3.65 billion per year). Industrial production has slowed by a record 21.4%, while foreign debt is approaching 60% of GNP (Gross National Product).

The government has had to make significant budget cuts to cope with a magnifying foreign debt and to satisfy the growing need of the Ukrainian Armed Forces. Still despite the crisis tax revenues have increased 9% in the 3rd quarter of 2014 . Sales tax account for 30% of the total budget.

According to the Ministry of Regional Development, 14 trade sites and 132 industrial facilities have been destroyed  in the Donetsk and Luhansk regions. As of the 5 of September, 5,926 miles of public roads and 24 bridges and overpasses have been severely damaged and or destroyed. The United Nations estimated costs for destroyed infrastructure is around $440 million since the beginning of the conflict.

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2 Comments Add yours

  1. Bart says:

    And no matter which side prevails (I just cannot say ‘wins’) those costs fall on them. What a wonderful victory; destroyed infrastructure, probably horrendous pollution problems, and bitterness that will last for generations. Does nobody in charge ever think about this? Probably not.

  2. Danny Urban says:

    It screams to high heavens of shock doctrine. When the land is broke, both financially and spiritually, in swoops the wolfs and buy up companies and industries for nothing and capitalism yet again found a way to expand its market further.

    The cost of the Ukrainian people are a sad reality, something that will last a very very long time, even should these war acts end. On top of that comes the cost of the involved nations. We all know that its not gonna be the politicians that are gonna pay the ultimate price, but as always the civilians.

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