Ukraine loses $11.2 billion annually due to mined areas - Tony Blair Institute study
The losses of Ukraine due to mines and other explosive ordnance are estimated at $11.2 billion annually. This is equivalent to 5.6% of Ukraine's GDP in 2021. The biggest losses are caused by a reduction in agricultural exports and a decrease in local tax revenues. This is stated in a study by the Tony Blair Institute conducted jointly with the Ministry of Economy of Ukraine.
According to Tony Blair Institute calculations, Chernihiv, Sumy, Mykolaiv, and Kharkiv regions lost more than 20% of their regional GDP due to mined areas. In total, local authorities are losing more than $1.1 billion in local taxes.
During a discussion with Howard Buffett, philanthropist and head of the charity foundation, Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy of Ukraine, noted that to speed up the process of land demining, the government has launched a compensation program for farmers who plan to demine the agricultural land they work on.
“Currently, 10 auctions have been announced in the Prozorro system for the procurement of services for the demining of agricultural land. The total area of land to be demined is over 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 Svyrydenko.
In its report, the Toni Blair Institute noted that the World Bank estimates that nearly $35 billion will be needed to demine the entire territory of Ukraine. And this money could be compensated by Ukraine in less than three and a half years after the complete clearance of the land, the report emphasizes.
It is worth mentioning that the issue of humanitarian demining is overseen by the First Deputy Prime Minister of Ukraine - Minister of Economy of Ukraine Yulia Svyrydenko. The Ministry of Economy of Ukraine ensures the interaction of central executive authorities in the mine action field, particularly in the area of humanitarian demining.