Damages and losses in energy as a result of the invasion of the Russian Federation exceeded 56 billion dollars - KSE

Losses and losses of the energy sector of Ukraine as a result of a full-scale invasion of the Russian Federation exceeded 5 56 billion., stated in the KSE Institute, publishing an assessment as of May 2024, writes UNN.

Details

"As a result of the full - scale invasion of the Russian Federation on the territory of Ukraine, the energy sector suffered direct losses and indirect financial losses in the amount of 5 56.2 billion, while the restoration needs, which provide for the complete reconstruction of destroyed facilities on the principle of "rebuild better than it was", amount to.50.5 billion," the report says.

According to the analytical team of the Kiev School of Economics (KSE), direct losses in the energy sector of Ukraine as of May 2024 amount to more than.16.1 billion. The largest losses, as indicated, were caused by the destruction of electricity generation facilities (8 8.5 billion), main electricity transmission lines (. 2.1 billion), as well as oil and gas infrastructure (. 3.3 billion).

Indirect losses of the energy sector are estimated at almost 4 40.1 billion, the main share of this amount is accounted for by the lost revenues of energy companies - 3 39.6 billion. The rest belongs to the cost of clearing rubble and carrying out dismantling works at damaged facilities - 0 0.5 billion.

The total needs for the restoration of the energy sector of Ukraine are tentatively estimated by the KSE analytical team at 5 50.5 billion, including the financial need to fully restore the destroyed and damaged energy infrastructure, taking into account the principle of "rebuild better than it was" (4 48.5 billion). The rest includes meeting the liquidity needs of energy companies as a result of revenue lost due to the War (2 2 billion). 

The needs for the restoration of the electric power sector are estimated at a total of 3 33.8 billion, including.29.3 billion for generation facilities. Another 4 4.6 billion is estimated to be needed to restore the electricity transmission and distribution infrastructure. The estimated cost of restoring the oil and gas sector is сягає 14.8 billion, and the district heating sector - 1 1.4 billion, not counting the restoration of large thermal power plants. 

For reference

​​The assessment of direct and indirect losses was carried out by the analytical team of the Kyiv School of Economics (KSE) in accordance with the methodology of the World Bank, taking into account the significant amount of microdata collected by relevant authorities, local civil-military administrations, energy companies since the beginning of a full-scale war, as well as from open sources due to limited access to data due to the high risk of spreading security-sensitive information.