Page 86 - RusRPTJun24

4.3.2 Corporate dynamics 4.4 Fixed investment
As of January 2024, total damages due to Russia’s war of aggression stood at $154.9 bn (see Figure 2.1). This figure includes the direct cost of destroyed or damaged physical assets and infrastructure. With Russia’s retreat from large swaths of Ukrainian territory — in the north of the country as well as the Kharkiv and Kherson regions — and geographical shifts of the front line becoming less dynamic despite heavy fighting, damages are leveling off somewhat, especially compared to the early months of the war. Losses — changes in economic flows due to the war — were estimated at $499.6 bn as of February 2024. Finally, the value associated with the restoration of the damaged infrastructure over the next ten years under building back better principles is $486.0 bn (as of February 2024).16 Damages differ considerably between sectors of the economy, with social sectors accounting for $71.4 bn, infrastructure sectors for $54.4 bn, and productive sectors for $28.9 bn (see Figure 2‐2 and Figure 2-3). Subsequently, we discuss in detail the damages to different sectors and subsectors and highlight key developments. The highest damages are identified for housing ($58.9 bn), followed by transportation infrastructure ($39.9 bn), commerce/industry ($15.7 bn), agriculture/forests ($13.2 bn), energy ($9.0 bn), and education ($6.8 bn).
86 RUSSIA Country Report June 2024 www.intellinews.com