Rebuilding Ukraine: why frozen Russian assets will not be enough for compensation

Rebuilding Ukraine: why frozen Russian assets will not be enough for compensation

According to ХВИЛЯ: Economist Oleg Ustenko points to the enormous losses of Ukraine due to the war and the inadequacy of frozen Russian assets for compensation. According to his data, verified damages to Ukraine amount to 450 billion dollars, while the president's estimates indicate a figure of 750 billion dollars. If indirect losses are considered, the total amount of damages reaches one trillion dollars.

The frozen Russian assets, amounting to 300 billion dollars, cannot cover even a portion of these costs. In particular, it is planned to seize only 100 billion dollars from the frozen assets, which is just one-tenth of the total amount needed for compensation.

'What does 750 billion dollars in direct losses mean compared to the frozen Russian asset of 300 billion dollars?' Oleg Ustenko

This raises doubts about the possibility of real financing for the country's reconstruction. The economist also emphasizes that the issue of compensation remains open: 'And if not, then the question arises again: who will pay for everything?' Ustenko believes that the process of restoring the country is solely Ukraine's responsibility.

'If you want to recover – recover. It’s your problem, not the problem of those who destroyed it.' Oleg Ustenko

Moreover, he stresses that demining the territories will require decades of work and enormous funds, which only exacerbates the problem of inadequate financing for reconstruction. Thus, the situation regarding compensation and the rebuilding of Ukraine remains complex, and there is a need to seek additional sources of financing.

International Support and New Sources of Financing

The situation regarding the rebuilding of Ukraine highlights the importance of international support and the necessity of creating financing mechanisms that can cover the enormous costs of restoration. In the context of the inadequacy of frozen Russian assets, Ukraine should seek new sources of financing, including international investments and grants, to restore infrastructure and support economic development. Effectively addressing these issues is strategically important for the country's future.