Ukraine's Finance Minister admitted that about 30% of the country's economy is not working amid the war tension that has not cooled down.
"According to our preliminary calculation on the basis of tax revenues, about 30% of the economy is either shutting down or shutting down. This calculation is made on the basis of personal income tax and other factors. taxes on social security. A third of the economy is currently not working," Ukrainian media quoted Finance Minister Sergey Marchenko as saying on March 20.
According to Mr. Marchenko, the Ukrainian government is considering reorganizing the activities of tax authorities in wartime conditions.
The Finance Minister of Ukraine said that domestic and foreign loans are the main channel to cover state budget needs, as revenue from taxes and customs has plummeted. Mr. Marchenko affirmed that Ukraine is not in danger of defaulting on its debt.
"There is no risk of default. Firstly, our debt burden is not too large, especially this year. Second, we have handled our debts carefully," Mr. Marchenko explained. .
Oleg Ustenko, a senior economic adviser to the President of Ukraine, said on March 10 that the Russia-Ukraine conflict has destroyed a series of infrastructure in Ukraine such as roads, bridges, factories, causing an estimated 100 billion in damage. USD in just 2 weeks.
"Currently about 50% of our businesses have to shut down, while the rest cannot operate at 100% capacity," Mr. Ustenko added.
Mr. Ustenko said Ukraine's economic growth was "very worrying, even if the hostilities ceased immediately". He called on European governments and other countries around the world to block Russia's money by embargoing its oil and gas.
Ukrainian President Volodymyr Zelensky signed a law on forced confiscation of property belonging to Russia and of Russian people in Ukraine because of Russia's military operation in Ukraine. On March 3, Ukraine's parliament passed a bill allowing the nationalization of Russian assets in Ukraine.
The International Monetary Fund (IMF) on March 9 approved a quick disbursement relief package of $1.4 billion for Ukraine. In its preliminary assessment, the IMF said the loss of lives, critical infrastructure, trade disruptions and the flow of refugees had reduced Ukraine's gross domestic product (GDP) by at least 10 percent. The IMF also said that the conflict in Ukraine would cause "terrible" damage to the global economy.
The World Bank in early March also disbursed nearly 500 million USD to support Ukraine, this is part of a financial support package worth 3 billion USD. In addition, the US Congress on March 9 also approved a $ 14 billion support package for Ukraine.
Russia launched an offensive campaign against military targets in Ukraine on February 24 with a statement to "demilitarize" and "de-fascistize" Ukraine. The conflict shows no sign of abating after 3 weeks of fighting. Russian forces are intensifying encirclement, attacking strategic Ukrainian cities and insisting that they only attack military targets.
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