Ukraine loses $11.2 billion annually due to mined territories

Ukraine suffers annual losses in the amount of 11.2 billion dollars due to mined areas and other explosive objects, which is 5.6% of the country's GDP for 2021. The main losses are related to the reduction of export of agricultural products and the reduction of local tax revenues. This information was made public by the Ministry of Economy of Ukraine.

According to a study by the Tony Blair Institute, the largest losses were recorded in Chernihiv, Sumy, Mykolaiv and Kharkiv regions, where more than 20% of the regional GDP decreased due to the presence of mined areas. Local governments are missing out on more than $1.1 billion in local taxes because of these problems.

The World Bank estimates the cost of complete demining of the territories of Ukraine at almost 35 billion dollars. This funding would allow Ukraine to offset these costs in less than three and a half years after the land is fully cleared.

Economy Minister Yuliya Svyridenko reported that in order to speed up the demining process, the government launched a compensation program for farmers who plan to demine agricultural plots. As part of the program, 10 auctions were announced for the purchase of services for demining agricultural land.

"There are currently 10 auctions announced in the Prozorro system for the purchase of demining services in agricultural areas. The total area of ​​land to be demined is more than 3,700 hectares. We expect that in the next two weeks the auctions will be successfully completed and the first contracts with mine action operators will be signed," said Svyridenko.