Ukraine's Economy Crippled by $11.2 Billion Annual Loss Due to Landmines

The ongoing conflict in Ukraine has left a devastating legacy of landmines, causing significant economic repercussions. A recent report by Ukraine's Economy Ministry and the Tony Blair Institute for Global Change reveals that landmines are suppressing Ukraine's GDP by $11.2 billion annually, equivalent to approximately 5.6% of the country's 2021 national wealth.

Tony Blair, executive chairman of the TBI, emphasized the global significance of this issue, stating, "This is not just a Ukrainian issue; it is a global imperative." The presence of landmines not only hinders Ukraine's economic recovery but also contributes to global food insecurity, as agricultural exports are severely impacted.

The most affected regions include Kharkiv, Sumy, Chernihiv, and Mykolayiv. These areas have experienced substantial reductions in regional tax revenues, estimated at $1.1 billion, while the value of Ukrainian exports has decreased by approximately $8.9 billion.

Agriculture, a crucial sector for Ukraine's economy, has been particularly hard-hit. The agriculture ministry reports that about 2.5% of arable land is currently unusable due to mine contamination. This situation is especially concerning given that agricultural products are Ukraine's primary exports and a key source of hard currency revenues during the ongoing conflict.

"When Russia's invasion began Ukraine had not a single demining vehicle. But now it had up to 100 and the government was aiming for at least 200 vehicles and 10,000 sappers to be able to demine the mined area in the next five years."

The scale of the problem is staggering. As of September 2024, approximately 139,300 square kilometers of land across Ukraine – an area larger than England – are mined. The World Bank estimates that about $34.6 billion would be required to safely demine Ukraine.

It's worth noting that landmines have been a global issue for decades. The Ottawa Treaty, signed in 1997, bans the use of anti-personnel landmines, but their devastating effects persist. Landmines can remain active for up to 50 years after being planted, posing long-term risks to civilian populations and ecosystems.

The economic impact of landmines extends beyond immediate safety concerns. These devices cost as little as $3 to produce but up to $1,000 to remove, creating a significant financial burden for affected countries. Moreover, landmines not only threaten human lives but also affect wildlife and contribute to environmental degradation.

To address this crisis, the report suggests that innovative financing mechanisms, including an agricultural bond market, will be necessary to close the substantial funding gap. The international community's support is crucial in this endeavor, as the removal of landmines is essential not only for Ukraine's recovery but also for global food security and humanitarian concerns.

As efforts continue to address this critical issue, it's important to remember that the use of landmines violates international humanitarian law in many contexts. The situation in Ukraine serves as a stark reminder of the long-lasting impacts of conflict and the urgent need for global cooperation in post-war recovery efforts.