Ukraine incurs $11.2 billion in annual losses due to landmines and other explosive devices. This is equivalent to 5.6% of Ukraine's GDP in 2021.
The largest losses are attributed to reduced agricultural exports and decreased local tax revenues. This is according to a study by the Tony Blair Institute conducted in collaboration with Ukraine's Ministry of Economy.
The Tony Blair Institute estimates that over 20% of regional GDP has been lost in the Chernihiv, Sumy, Mykolaiv, and Kharkiv regions due to mined areas. Overall, local authorities are missing out on more than $1.1 billion in local taxes.
During a discussion with philanthropist and head of the eponymous charity Howard Buffett, First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko highlighted that the government has launched a compensation programme for farmers planning to clear agricultural land.
"Currently, 10 tenders are announced in the Prozorro system for the procurement of land demining services for agricultural purposes. The total area of land to be cleared is over 3,700 hectares. We expect that in the next two weeks, the tenders will be successfully completed and the first contracts with demining operators will be signed," said Svyrydenko.
The Tony Blair Institute's report notes that, according to World Bank estimates, clearing all the land in Ukraine will require nearly $35 billion. The report emphasizes that Ukraine could potentially recover this amount in less than three and a half years after the land is fully cleared.
The issue of humanitarian demining is coordinated by the First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko. The Ministry of Economy ensures coordination between central executive bodies on issues related to demining activities, specifically in the area of humanitarian demining
