At least 109 Ukrainian businesses have suffered direct losses due to war
The largest enterprises that suffered losses included Ilyich MMK, Azovstal, Nibulon and Motor Sich (Photo:REUTERS/Alexander Ermochenko)
At least 109 large and medium-sized Ukrainian enterprises suffered direct losses in 2022 as a result of Russia’s full-scale invasion of Ukraine, a study by the Kyiv School of Economics published on Jan.26 found.
According to experts from KSE, the total amount of direct losses of enterprises, both state-owned and private, is estimated at $13 billion. Of them, the share of losses of large and medium-sized enterprises is $9 billion. At the same time, total indirect losses amount to $33.1 billion, while the amount required to restore these damaged businesses clocks in at $24.9 billion.
“Most of destroyed and damaged enterprises are located in six oblasts — Kyiv and Donetsk (17% each from the total amount), Zaporizhzhya (14%), Kharkiv (13%), Luhansk (10%), and Mykolayiv (8%),” said Dmytro Goriunov, senior economist at the Center for Economic Strategy.
“As a rule, the region of enterprise registration coincides with the region in which the enterprise received direct losses, but there are exceptions.”
Mariupol’s Illych Iron and Steel Works, Azovstal Iron and Steel Works, Nibulon, and Motor Sich are among the largest enterprises in terms of assets that suffered direct losses from Russia’s armed aggression in 2022.
KSE experts stated that 19 private and state-owned enterprises (17%), among large and medium-sized businesses, were completely destroyed, while another 90 (83%) were partially damaged.
“The amount of damage to new enterprises decreases as the front stabilizes,” Goriunov said.
“In addition, the number of new cases of looting or theft of merchandise is decreasing. It should be noted that we receive information about damaged facilities with some delay.”
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