Ukraine loses $11 billion yearly due to landmines

Source: Ukraine’s economy ministry

Ukraine is losing $11.2 billion annually because of landmines, a grim figure equivalent to 5.6% of the country’s 2021 GDP, according to a report by the Tony Blair Institute, conducted alongside the Ministry of Economy.

Some regions are paying an even steeper price. Chernihiv, Sumy, Mykolaiv, and Kharkiv have seen over 20% of their local GDP vanish, while their budgets miss out on more than $1.1 billion in tax revenue.

To speed up demining, the Ukrainian government has rolled out a compensation program for farmers brave enough to clear their agricultural land of deadly explosives. There are also efforts to ramp up the number of demining operators, with ten auctions already announced on the Prozorro platform to purchase demining services for farmland.

In her meeting with philanthropist Howard Buffett, Ukraine’s economy minister Yuliia Svyrydenko revealed that Kyiv plans to demine at least 3,700 hectares. According to the World Bank, demining the entire country could cost a staggering $35 billion.

On a brighter note for farmers, the Ukrainian government recently upped its compensation for demining agricultural land to cover 100% of costs, compared to the previous 80%.