Although the war in Ukraine continues to devastate the country, the Ukrainian Finance Minister says he has the first signs of economic recovery and envisions rebuilding his country.
“The war continues, but there is no escalation of the first two months of the Russian offensive that began on February 24,” Finance Minister Sergei Marsenko said in an interview with AFP. from the blue and yellow flag of Ukraine in the historic center of Kiev.
“It continues, but not at the pace we have seen before,” added the 41-year-old minister, who, like many Ukrainian government officials, has replaced the suit with more comfortable clothes and a hooded sweatshirt.
To this day, the landscape is devastating for the country, which was already one of the poorest in Europe before the invasion and has seen millions of its inhabitants flee abroad, mostly women and children.
Although the International Monetary Fund forecasts a 35% drop in Ukrainian GDP this year, Sergei Marshenko himself expects a 45% to 50% drop in GDP and estimates the damage to the Ukrainian economy at this stage “at about $ 600 billion.” “.
Revenues from customs duties fell by 70%, tax revenues “by 25% to 30%”, imports and exports have doubled and inflation exceeded 16% in April on an annual basis, he says.
However, after the failed goal of occupying Kiev, Russian forces withdrew from the outskirts of the Ukrainian capital and from northern Ukraine, paving the way for the return of part of the population and the resumption of operations.
“Consumer demand is growing, connections are being renewed” in Kyiv and the wider region, says Sergei Marshenko, who believes that the return of the embassies in the Ukrainian capital gives citizens the signal to return and resume economic activities.
“Means of survival”
After all, many Ukrainian companies have moved their operations to the western part of the country, which was relatively marginalized by the fighting, at a time when fighting is raging in eastern and southern Ukraine, while Russian strikes are taking place across the country.
Kyiv does not provide for a moratorium on payments or debt restructuring. “We need $ 5 billion a month to cover the budget deficit,” said the minister, whose priority now is to ensure a steady flow of international financial aid.
“We are asking for more financial support, but the price is also higher. For us it is a means of survival,” said Sergei Marshenko calmly.
“Ukraine is now the advanced outpost of the struggle for democracy. We can not lose this war and we need weapons, resources and sanctions,” he said.
Resources are needed to fight, but also to rebuild the war-torn country.
Ukrainian President Volodymyr Zelensky has called on the international community to draw up a new “Marshall Plan” for his country.
“We need to direct Russian assets abroad to the reconstruction of Ukraine,” he said.
“When the occupier enters Ukrainian territory, he steals. All he does is destroy infrastructure, businesses, kill people: grain was stolen, as well as mineral resources.”
“We are dealing with thieves who ‘entered the house’ and picked up whatever they wanted,” he said.
The Ukrainian Minister of Finance states that the infrastructure that is vital to the economy is the one that has suffered the most damage and should have priority in reconstruction.
“The main goal is to allow people to return to the liberated lands and to normal life with electricity, water, gas and other infrastructure, such as roads and bridges,” he said.
Source: Capital

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