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Due to the war, Ukraine lost out on UAH 3bn in rent payments. State and local budgets for the first half of 2022 lost more than UAH 3bn in rent, the Accounting Chamber said. At the same time, over the past 2.5 years, the consolidated budget received UAH 196bn from rent, in particular: UAH 179bn from the use of subsoil, UAH 6bn from the use of radio frequency resources, UAH 3.9bn from the use of forests, UAH 3.5bn from transportation, and UAH 2bn from water use. In the first half of 2022, income from annuities began to fall. Until 2022, Ukraine received more than UAH 1bn annually for the transit of Russian ammonia. Currently, the only operator of the main ammonia pipeline in Ukraine is not operating or paying rent. Revenues from rent for forest use also decreased due to Russia's temporary occupation of the territories where wood is harvested. Also, 69% of its customers stopped paying rent for water use.
9.1.6 Agriculture sector news
The total direct damage caused to Ukraine’s agricultural industry by the end of 2022 amounts to $9.3-9.8bn, according to the National Academy of Agrarian Sciences of Ukraine (NAAS).
This includes damage from the blockade of Ukrainian seaports and forced changes in export transportation logistics ($7.5-8.0bn), the cost of unsold grain from last year ($0.5bn), and the cost of warehouses and granaries destroyed or seized by invaders ($1.3bn). This figure is almost equal to the total profit of the country's agricultural enterprises in 2020 and 2021.
Furthermore, the Center for Food and Land Use Research of the Kyiv School of Economics (KSE Agrocenter) estimates that the total amount of indirect losses suffered by the agricultural industry of Ukraine due to the Russian invasion amounted to $34.25bn from February 24, 2022 to September 15. This represents an increase of 47% compared to mid-June, equating to an additional $10.8bn in losses.
According to the KSE Agrocenter, direct losses suffered by the Ukrainian agribusiness as of September 15, 2022 were estimated at $6.6bn, or 23% of the total value of Ukrainian agricultural assets.
The majority of indirect losses, 54%, were a result of a shortfall in income due to lower prices for foodstuffs exported by Ukraine and problems with its export abroad - $18.5bn. The other factors were the reduction in crop production - $14.2bn (34% of total losses), an increase in agricultural production costs due to an increase in the cost of fertilizers and fuel - $862mn (2.5%), a decrease in livestock production - $348.7mn (1%) and a decrease in the production of perennial crops - $322mn (less than 1%).
Overall, the full-scale Russian invasion has caused significant damage to the agricultural industry of Ukraine, both in direct and indirect losses. It is clear that the country will have to take significant steps to recover from the losses suffered.
The US Department of Agriculture predicts a 2.4% increase in Ukraine’s wheat harvest. The US Department of Agriculture increased the wheat harvest forecast in Ukraine by 2.4% in the current marketing year, July
55 UKRAINE Country Report February 2023 www.intellinews.com