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War has caused $40 billion in losses to agriculture

Sep 28, 2023

Direct and indirect losses of Ukrainian farmers due to the war exceeded 40 billion US dollars.


About this during the round table "18 months of war. Damages to the agricultural sector and prospects for the recovery of the industry," Oleksandr Hajdu, chairman of the Committee of the Verkhovna Rada of Ukraine on Agrarian and Land Policy, reported, Ukrinform correspondent reports.

According to the parliamentarian, the confirmed direct losses of the agricultural sector exceeded 8.7 billion dollars USA. It is about the destruction of infrastructure, economic facilities, logistics chains, destruction and theft of grain and agricultural machinery by the enemy.

"And there are also indirect losses - at least 30.5 billion dollars USA. And this, unfortunately, is not the final number. Because when we accurately calculate the damage caused by the enemy's detonation of the Kakhovskaya HPP, the amount will be much greater," said Haydu.

It is also difficult to assess the consequences of contamination of agricultural land with explosive objects, destruction of the upper layers of the soil due to "arrivals" and detonations during demining.

"We see that a large area is mined. 174,000 square kilometers of Ukrainian lands are potentially contaminated with explosive objects. And this is without taking into account the temporarily occupied regions", - detailed the deputy. In this connection, he informed about the preparation of the draft law "On soil quality".

Parliamentarians are also discussing the issue of "grain reparations". However, there is no mention of specific mechanisms yet.

"There are still many other directions, in particular - the continuation of the land reform. It is very important that everyone understands how, for example, the simplified procedure for buying and selling land works. So that no one is afraid to manage legally, bringing land relations out of the "shadows". So that banks can lend to agrarian businesses, and insurance companies can insure their risks. Because the territory of Ukraine free from the enemy has (conditionally) been divided into two parts: where there were no hostilities, agribusiness works more or less stably, and there are serious problems in the de-occupied and near-front areas," said the chairman of the agrarian committee of the parliament.

At the same time, he called the lack of funding one of the key problems, along with demining. Banks do not want to lend to the business there, considering it risky operations, and there are no insurance products that would "extinguish" these risks.

"And it is very important for us to attract funds specifically for the needs of farmers in these regions because this is the only way we can stimulate local business. And for the state, these are taxes, jobs, and such necessary agricultural products," Haydu concluded.

The round table was attended by representatives of the agrarian committee of the Verkhovna Rada, the Ministry of Agrarian Policy, local self-government bodies, charitable organizations, delegations of partner states, as well as more than six dozen farmers from all corners of the country. The organizers are the All-Ukrainian Agrarian Council and the USAID Program for Agrarian and Rural Development (AGRO).

Author - Serhii Kolomiets, 28/09/2023

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