Ukraine's agriculture industry has lost $80 billion due to Russian invasion, minister says
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Ukraine's agricultural sector has suffered around $80 billion in losses due to Russia's full-scale invasion, Agriculture Minister Vitalii Koval said on Feb. 25 during a World Bank report presentation.
This figure includes not only direct damage but also indirect damage caused by disrupted logistics, increased fertilizer and fuel costs, expenses for land reclamation and demining, and occupied territories, the minister added.
"I'm convinced that the restoration of the agricultural sector must begin today," Koval said. "A key priority is helping farmers in front-line territories."
The agricultural sector plays a vital role in Ukraine's economy, comprising approximately 20% of the country's GDP, Koval said earlier.
After Russia's full-scale invasion broke out in 2022, Ukraine's previously dominant share of non-agricultural exports declined significantly.
According to a study by the German-Ukrainian Agricultural Policy Dialogue project, after Russia’s full-scale invasion began, Ukraine’s non-agricultural exports have declined significantly, while agricultural food exports have remained relatively stable, providing vital support to the Ukrainian economy.
Koval previously said that farmers, together with agro-processors, produce about 60% of export revenues, playing a key role in the Ukrainian economy amid the full-scale war.
Throughout the full-scale war, Moscow has attempted to obstruct Ukraine's agricultural exports by blockading the Black Sea and trying to replace Ukrainian products in global markets with its own, including grain looted from occupied territories.
Despite these challenges, Ukraine reopened a maritime trade corridor in 2023, enabling the revival of its agricultural exports. In 2024, Ukraine's agricultural exports reached $24.5 billion, approaching pre-war levels and achieving the second-highest record after 2021's $27.7 billion. Last year, agricultural exports accounted for 59% of the country's total exports.
