Kyiv Post: Damage of infrastructure in the east is a massive blow to economy
to infrastructure due to warfare in eastern Ukraine is already hitting the local economy
hard, and will continue to do so for years to come due to costly and lengthy repairs
As some of the
mammothsof industry get
cut off their supply and shipping chains, Ukrainemight lose up to
4-5 percent of its gross domestic product in thesecond half of
2014, according toConcord Capitalinvestment
One of the
of vital economic infrastructure that it taking manyhits is the
railway. Morethan 166 objects
of railway infrastructure of the Donetsk,Prydniprovsk and
Southern railways have been damaged as a result ofmilitary
operations in May-July 2014, according to an Ukrzaliznytsyaspokesman.
seems to be a pattern behind what might seem like random hits.The damage is
taken by the most important supply arteries of theregion, which is
home to industrial giants responsible for a bigchunk of
export-oriented commodities in Ukraine.
of damage at occurred along the main routes of Donetsk railway(Chaplyne –
Yasenuvata, Krasnoarmiysk –Gorlivka, Kostantynivka -Debaltseve).
These railroads are used to ship coke and coal fromDnipropetrovsk to
Damage to key
elements of infrastructure in the east of Ukraine might cause the loss of 4-5 percent of
gross domestic product in the second half of 2014, according to some estimates. This
infographic, designed by Kyiv Post+ with the technical assistance of Ukrainian Crisis
Media Center, shows the scope of the problem.
MykolaTopchiev, Head of
Analytical Department of Ukrzaliznytsya, thenational rail
carrier, says that such key enterprises as Azovsteel,Yenakiyevo steel
plant, Alchevsk steel integrated plant, Donetsksteel plant,
Donetsk metal works, Avdiivka coking plant, Stirol,Severodonetsk
union Azov are all under threat of, or have had theirsupplies
Donetsk and Lugansk-based bluechips account for 23 percent of industrial
output of the country. But by now, because of the war, circulation of their commodities
fell 2.5 times, according
toOleksandr Parashiy, head of the
analytical department ofConcorde Capital.
Passengertraffic has been
disrupted as well because of numerous explosions.In fact, trains
are not going to any other directions but viaLozovaya –
Kramatorsk – Konstantinovka. It has been the onlyfunctioning
railway route to Donetsk for about a month.
spokesman said due to lost traffic alone in the pastseven month its
losses have accounted for Hr 1.6 billion. Terroristactions have
caused Hr 300 million of damage. But the whole industrycould lose up 10
times that much by the end of the year.
“Takinginto account the
fact that Donetsk and Lugansk oblasts form 16percent of
national GDP, overall, Ukraine might lose 4-5 percent ofGDP inthe second
half-year of 2014” says Parashiy.
Kyiv Post+ is a
special project covering Russia's war against Ukraine and the aftermath of the EuroMaidan