According to the Tony Blair Institute, Chernihiv, Sumy, Mykolaiv, and Kharkiv regions have lost more than 20% of their regional GDP due to landmined areas. Local authorities in Ukraine are missing out on over $1.1 billion in local tax revenues because of these issues, as reported by the Ministry of Economy.
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Government Measures for De-mining
During a discussion with philanthropist Howard Buffett, First Deputy Prime Minister and Minister of Economy of Ukraine, Yulia Svyrydenko, noted that to accelerate the de-mining process, the government has introduced a compensation program for farmers who plan to clear agricultural land.
“Currently, there are 10 tenders announced in the Prozorro system for purchasing services for de-mining agricultural land. The total area of land planned for de-mining exceeds 3,700 hectares. We expect that within the next two weeks, the tenders will be successfully completed, and the first contracts with mine action operators will be signed,” said Yulia Svyrydenko.
Financial Assessment of De-mining
The Tony Blair Institute also notes that according to the World Bank’s estimates, approximately $35 billion will be required to fully de-mine Ukraine’s territory. According to the report, Ukraine could recover these costs in less than three and a half years after the land is fully cleared.
These figures highlight the importance and urgency of effective de-mining for Ukraine’s economic recovery and the restoration of normal living conditions in affected regions.
According to the Tony Blair Institute’s study, Ukraine’s annual costs for clearing the aftermath of mines and other explosive remnants amount to $11.2 billion. This is equivalent to 5.6% of Ukraine’s GDP in 2021. The largest losses are attributed to reduced agricultural exports and decreased local tax revenues.
