As Agrocenter Kyiv School of Economics already reported, after three months of full-scale war of Russia against Ukraine the losses in the agricultural sector of Ukraine reached 4.3 billion USD, which is almost 15% of the country's capital. While these losses reflect the full or partial destruction of tangible assets, indirect losses take into account the shortfall in income from the reduction of goods produced and the extra money that producers are forced to spend because of the war. Under-received income is the difference between actual income and the income that agricultural producers would have received if Russia's invasion of Ukraine had not occurred.
"Indirect loss calculations help us understand not only the extent of the industry's decline, but also the needs for a full resumption of production. Much of the lost income was used to cover the costs of the next sowing campaign and the purchase of feed for livestock. Without a partial compensation of losses, the farmers in the regions most affected by the war will not be able to restart production", says Roman Neuter, an expert of the KSE Institute's Centre for Food and Land Management Research.
Read more about the structure of indirect losses by category, producer losses due to the naval blockade, producer losses due to the naval blockade and the amount of losses by category at: minagro.gov.ua