Financial difficulties of Ukraine in the post-war period
Economist Oleg Ustenko warned that Ukraine may face serious financial difficulties in the post-war period if a clear mechanism for compensation of losses is not implemented. According to him, frozen Russian assets are insufficient to cover even verified losses amounting to 450 billion dollars. President of Ukraine Volodymyr Zelensky mentioned a larger figure - 750 billion dollars, while the total amount of losses could reach 1 trillion dollars.
Key issues and recommendations
The key issue remains the volume of frozen Russian assets, which is estimated at approximately 300 billion dollars. Ustenko noted that this is twice as less than what is needed to cover the losses. He also emphasized that maintaining an army of 800 thousand people will require 60 billion dollars a year, while medical programs for veterans will need an additional 10 billion dollars. According to him, only 3% of the Gross Domestic Product (GDP) will remain for all other social needs.
"Simply waiting for peace without a realistic economic plan is dangerous."
Oleg Ustenko, economist
Ustenko recommends not just waiting for peace but developing a realistic economic plan. The economist also emphasized that although Ukraine has not lost its independence during the war, it risks losing it in the future if necessary measures to stabilize the economy are not taken. Thus, the country is facing a challenge that requires urgent resolution to ensure its financial stability after the conflict ends.
This situation highlights the importance of strategic planning in times of instability. The lack of adequate financial resources can negatively affect the country's recovery and social stability. Implementing effective economic mechanisms and attracting international assistance could be critically important to avoid an economic crisis and ensure sustainable development of Ukraine in the post-war period.