Ukraine’s losses due to mines and other explosive devices amount to USD 11.2 billion annually. This is equivalent to 5.6% of Ukraine’s GDP in 2021. The biggest losses are due to 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.

In a new report Tony Blair Institute funded by the Howard G. Buffett Foundation estimates, 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 USD 1.1 billion in local taxes.

During the discussion with Howard Buffett, philanthropist and head of the eponymous charity, First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko noted that to speed up the process of land clearance, the Government had launched a compensation programme for farmers who plan to clear the agricultural land they work on.

“Currently, 10 auctions have been announced in the Prozorro system for the purchase 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 Yuliia Svyrydenko.

According to the report by the Tony Blair Institute, the World Bank estimates that nearly USD 35 billion will be needed to clear the entire territory of Ukraine of mines. And this money could be recovered by Ukraine in less than three and a half years after the land is fully cleared, the report says.

Background

Humanitarian demining is coordinated by Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine. The Ministry of Economy ensures the interaction of central executive authorities on mine action in terms of humanitarian demining.