Russia destroys $100 billion worth asset of Ukraine so far: Top govt economist

The
invading Russian forces have so far destroyed at least $100 billion worth of
infrastructure, buildings and other physical assets of Ukraine, said the
country’s top government economic advisor Oleg Ustenko.

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In
a virtual event hosted by the Peterson Institute for International Economics,
Ustenko, chief economic adviser to Ukrainian President Volodymyr Zelensky, said
that the war forced 50 % of Ukrainian businesses shut down completely, while
the other half are operating at well below their capacity, reported Reuters.

The
damage includes roads, bridges, hospitals, equipment and other assets.

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Asked
how Ukraine would finance the reconstruction effort, Ustenko said part of it
could come from Russian assets that are frozen throughout the world, including
Russian central bank assets held outside the country and immobilized by Western
sanctions. The seized assets of wealthy Russian oligarchs could also be
transferred to a reconstruction fund, he added.

Talking
about Ukraine’s financial system and bank payment operations, Ustenko said,
“Look, we are doing, I would say, OK under the current circumstances.”

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He
also said Ukraine’s fiscal reserves are currently at about $27.5 billion, down
from about $30 billion before the invasion.

Despite
some pressure on the hryvnia currency, Ukrainians in areas that are not
occupied by Russian forces are able to access cash via ATMs and supermarket
cashiers without the long lines seen in the first two days of the war, and
credit card and other electronic payment systems are working normally, he
added.

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“Even
in those cities surrounded by now by the Russian army…(residents) are able
use their cards,” Ustenko said.

In
eastern and northeastern Ukraine, Russian missile attacks have devastated
cities, towns and villages across Ukraine. 

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The
capital city of Kyiv and the small city of Irpin sits just 20km (12 miles)
northwest of Kyiv and has found themselves on the frontline between Russian and
Ukrainian forces over the past week.

Artillery
and airstrikes have caused severe damage in the area, with one attack leaving
the residential area pictured below almost completely destroyed.