Oleg Ustenko, economist and adviser to the President of Ukraine, told the Ukrainian Radio how the Fund for Liquidation of Consequences of russian Aggression is replenished, what is the amount of losses caused by war, when costs will be transferred to Ukraine from seized assets of the russian federation, and how the so-called Marshall Plan should work for the country.
About the Fund for Liquidation of Consequences of russian Aggression
The Fund for Liquidation of Consequences of russian Aggression has already been created. But there are some organizational issues related to its creation and what these funds will be used for. With regards to replenishment of this fund and the latest resolution of the Cabinet of Ministers, we are talking about 6.6 billion UAH. These are not enough funds for full recovery of the Ukrainian economy and the country in general. In this war we have suffered losses much exceeding $750 billion previously estimated.
That’s why a big conference is starting to work in London, related precisely to the issues of the Ukrainian economy recovery. Losses caused by russia should be fully compensated: this is one of positions discussed in the Peace Plan of President Zelenskyi. Such losses cause buildings damaged by the russian army, enterprises that need to be rebuilt on a new technical and technological basis and a crucial part of our key infrastructure.
About the amount of losses
We are talking about recovery in two directions. The first is quick recovery, immediately and now. It covers the most crucial part of the key infrastructure. Therefore, 6.6 billion UAH are directed specifically to its restoration.
As per preliminary assessment, one trillion US dollars, or 40 trillion UAH include direct and indirect losses caused by russian armed forces. Therefore, they should compensate us the debts we had to incur, the interest we will pay upon such debts and the lost property. Moral compensation will also be required.
About funds from russian assets seized abroad
Currently, the principal issue is that the seized funds of russia, in particular, funds of their Central Bank and nomenklatura, should be transferred immediately for the needs of Ukraine. We hope that the process of their transfer has already commenced. We expect that the first funds should appear in Ukraine quickly enough, in a month or two.
About state investments
The allocated 6.6 billion UAH, like any state investment in infrastructure projects, gives the opportunity to work primarily to private business. There can be no business when you do not have access to power supply or it is supplied under unclear schedule. There can be no business if there is no logistics corridor and you cannot transport goods simply due to destroyed bridge, but you have to transport by some other ways, which increases transport costs and, accordingly, prime cost and price. Therefore, such type of state investments shall provide an opportunity to receive additional impetus for economy development.
About the Marshall Plan aimed at reconstruction of Ukraine
While speaking about the complete reconstruction of Ukraine, we mean also that it will be necessary to rebuild the entire destroyed infrastructure. That’s an additional boost for economic growth not just because the state spends money, but because new jobs are created in construction-related industries. In general, new jobs appear because people receive additional funds and, accordingly, can spend more. This is a classic economic restart.
That is why they are talking about the so-called Marshall Plan aimed at reconstruction of Ukraine. It was based on the fact of giving impetus to development at the expense of state investments in infrastructure. One can build infrastructure and facilitate conditions for normal development of private business. Further, private business gets an opportunity for growth. The main task in the post-war period is to return our economy to the pre-war level as soon as possible.
Mr. Usenko, the President’s adviser, states that losses caused by russia’s war against Ukraine make up a trillion USD dollars
Oleg Ustenko, economist and adviser to the President of Ukraine, told the Ukrainian Radio how the Fund for Liquidation of Consequences of russian Aggression is replenished, what is the amount of losses caused by war, when costs will be transferred to Ukraine from seized assets of the russian federation, and how the so-called Marshall Plan should work for the country.
About the Fund for Liquidation of Consequences of russian Aggression
The Fund for Liquidation of Consequences of russian Aggression has already been created. But there are some organizational issues related to its creation and what these funds will be used for. With regards to replenishment of this fund and the latest resolution of the Cabinet of Ministers, we are talking about 6.6 billion UAH. These are not enough funds for full recovery of the Ukrainian economy and the country in general. In this war we have suffered losses much exceeding $750 billion previously estimated.
That’s why a big conference is starting to work in London, related precisely to the issues of the Ukrainian economy recovery. Losses caused by russia should be fully compensated: this is one of positions discussed in the Peace Plan of President Zelenskyi. Such losses cause buildings damaged by the russian army, enterprises that need to be rebuilt on a new technical and technological basis and a crucial part of our key infrastructure.
About the amount of losses
We are talking about recovery in two directions. The first is quick recovery, immediately and now. It covers the most crucial part of the key infrastructure. Therefore, 6.6 billion UAH are directed specifically to its restoration.
As per preliminary assessment, one trillion US dollars, or 40 trillion UAH include direct and indirect losses caused by russian armed forces. Therefore, they should compensate us the debts we had to incur, the interest we will pay upon such debts and the lost property. Moral compensation will also be required.
About funds from russian assets seized abroad
Currently, the principal issue is that the seized funds of russia, in particular, funds of their Central Bank and nomenklatura, should be transferred immediately for the needs of Ukraine. We hope that the process of their transfer has already commenced. We expect that the first funds should appear in Ukraine quickly enough, in a month or two.
About state investments
The allocated 6.6 billion UAH, like any state investment in infrastructure projects, gives the opportunity to work primarily to private business. There can be no business when you do not have access to power supply or it is supplied under unclear schedule. There can be no business if there is no logistics corridor and you cannot transport goods simply due to destroyed bridge, but you have to transport by some other ways, which increases transport costs and, accordingly, prime cost and price. Therefore, such type of state investments shall provide an opportunity to receive additional impetus for economy development.
About the Marshall Plan aimed at reconstruction of Ukraine
While speaking about the complete reconstruction of Ukraine, we mean also that it will be necessary to rebuild the entire destroyed infrastructure. That’s an additional boost for economic growth not just because the state spends money, but because new jobs are created in construction-related industries. In general, new jobs appear because people receive additional funds and, accordingly, can spend more. This is a classic economic restart.
That is why they are talking about the so-called Marshall Plan aimed at reconstruction of Ukraine. It was based on the fact of giving impetus to development at the expense of state investments in infrastructure. One can build infrastructure and facilitate conditions for normal development of private business. Further, private business gets an opportunity for growth. The main task in the post-war period is to return our economy to the pre-war level as soon as possible.