Due to the threat of Russian invasion, Ukraine loses $2 to $3 billion a month due to suspended investment and additional inflation, Rostyslav Shurma, Deputy Head of the President’s Office, has said.
“We see that irreversible losses amount to $2 to $3 billion a month in such a stressful situation. This includes suspended investments, additional inflation, losses in the tourism sector and reduced air traffic,” Shurma said.
According to the official, there is also a speculative pressure on financial markets, which blocks borrowing and pushes the exchange rate up. Shurma estimates this type of pressure at $1.5-2 billion.
“Losses for the economy stand at about $2 to $3 billion, that’s the damage we incur every month. Also, $4 to $5 billion is a “cushion” for us to proceed with involving resources for development. You see objectively what kind of decisions an investor would make in this situation. Of course, everyone is putting projects on hold. They are not canceling, but postponing decisions. Also, foreign credit markets are temporarily shut,” Shurma said.
The official noted that if the stress level prevailed, the monthly losses would remain the same they had been since January.
“If the situation stabilizes in the information space at least in its current state, the pain threshold will rise, and in two months there will be no such losses,” Shurma added. (Ukrinform/Business World Magazine)