NYT: Ukraine enters “most difficult period” of war as Russian strikes mount

Ukraine is entering “its most difficult period of the war” due to labor shortages and increased bombardments, Dimitar Bogov, chief economist of the European Bank for Reconstruction and Development (EBRD), said, as reported by The New York Times (NYT).

Despite strong spending power among the population, he noted, people “are not able to spend” amid the worsening situation.

Against this backdrop, Ukraine’s economic growth could fall to zero by the end of the year as Russian attacks become more effective, according to the newspaper. Ukraine’s Economy Ministry estimates that damage from the Russian campaign will amount to around $10 billion by the end of the year, with most of the losses being indirect and stemming from lost sales and disruptions to operations and logistics.

The EBRD recently cut its forecast for Ukraine’s economic growth this year from 2.2% to 1.5%. According to The NYT, the impact of Russian attacks could wipe out the economic growth recorded in recent years, which was driven in part by the expansion of drone production.

Russian strikes on locomotives have also had a significant impact, with trains reportedly being hit while in motion using precision-guidance systems. The NYT claims that Ukraine is losing an average of one locomotive per day and has already lost around 500 of its approximately 1,800 locomotives.

By Jeyhun Aghazada