Russia is destroying Ukraine's economy, raising costs for U.S. and allies [View all]

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ECONOMIC POLICY

Russia is destroying Ukraine’s economy, raising costs for U.S. and allies

By Jeff Stein and David L. Stern
Updated December 15, 2022 at 11:19 a.m. EST|Published December 15, 2022 at 1:00 a.m. EST

KYIV, Ukraine — Two months of relentless missile and drone attacks by Russia have decimated Ukraine’s critical infrastructure and blown a hole in projections for the country’s war-ravaged economy.

Before those strikes, Kyiv expected to need at least $55 billion in foreign assistance next year to meet basic expenses — more than the country’s entire annual prewar spending.

Now, with its energy systems severely battered, and more Russian attacks likely, some officials believe Ukraine could end up needing another $2 billion a month, and political leaders have begun trying to brace Western supporters for such worst-case scenarios.

“What do you do when you can’t heat your house, you can’t run your shops, factories or plants, and your economy is not working?” said Oleg Ustenko, an economic adviser to President Volodymyr Zelensky. “We are going to be requiring more financial assistance, and Putin is doing this to destroy unity among allies.”

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By Jeff Stein
Jeff Stein is the White House economics reporter for The Washington Post. He was a crime reporter for the Syracuse Post-Standard and, in 2014, founded the local news nonprofit the Ithaca Voice in Upstate New York. He was also a reporter for Vox. Twitter https://twitter.com/jstein_wapo

By David Stern
David L. Stern has worked for news outlets in Russia, Eastern Europe, the Caucasus, the Middle East and Central Asia. He has lived in Ukraine since 2009, covering the 2014 Maidan revolution, war in the country’s east and now Russia’s 2022 invasion. Twitter https://twitter.com/loydstern