• Українською
  • At least USD 2 billion in direct losses incurred by Ukraine due to blasting of Kakhovka HPP
    Ministry of Economy of Ukraine, posted 30 June 2023 14:38

    The amount of direct damage caused by the explosion of the Kakhovka HPP is at least USD 2 billion. This includes losses in the housing and utilities sector, energy, agriculture, transport, environment, and industry. These data are presented in the first analysis carried out by the KSE Institute, an analytical unit of the Kyiv School of Economics, in cooperation with the Office of the President of Ukraine, the Ministry of Economy and the Ministry for Communities, Territories and Infrastructure Development.

    "We continue to record the damage and process the losses caused by russia's blowing up of the Kakhovka Hydroelectric Power Plant dam. The housing stock in Kherson and Mykolaiv regions has suffered serious losses. Direct losses from the flooding of private homes and related infrastructure are estimated at USD 950 million. More than a quarter of the total damage - USD 586 million - was caused by the destruction of some hydroelectric power plants, which would have to be built from scratch. Separately, the Ministry of Environmental Protection and Natural Resources has preliminarily estimated the environmental damage at USD 1.5 billion. The priority issue is to provide the affected regions with potable water. Thus, the Budget Committee has approved the allocation of USD 41 million (UAH 1.5 billion) for the construction of main water pipelines," said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

    According to the KSE Institute's analysis, the losses due to the Kakhovka HPP tragedy include:

    • Housing: $950 million in losses. About 20,000 – 30,000 houses in Kherson region and more than more than 500 private homes in Mykolaiv region.
    • Energy sector: USD 624 million in losses. The Kakhovka Hydroelectric Power Plant was destroyed beyond repair, contributing USD 586 million to the sector's total losses. The construction of a new hydroelectric power plant will require about USD 1 billion.
    • Transport infrastructure: USD 311 million in losses. More than 290 km of roads were damaged by the floods.
    • Industry: USD 105 million in losses. 28 large industrial facilities located on the right and left banks of the Dnipro River were flooded.
    • Agriculture: USD 25 million in losses.
    • Environment and ecology: USD 1.5 billion in losses. 150 tonnes of oil leaked during the dam explosion. The salinity level of the Black Sea near Odesa is almost three times lower than normal.

    More details are available in the report at the link.