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Institute

Overview of Damages and Losses in the Agro-Industrial Complex

A project to calculate damages and losses in the agro-industrial complex, aimed at informing the general public and policymakers about compensation and recovery needs.
Russia’s full-scale war against Ukraine has been ongoing since February 24, 2022. More than 8 million Ukrainians have become internally displaced persons, and up to 6 million have left the country. The Ukrainian economy is projected to contract by 45%, while tens of millions of people worldwide face the threat of malnutrition due to disruptions in grain exports from Ukraine and damage to the country's agricultural sector.
The KSE Institute’s Center for Food and Land Use Research, in partnership with the Ministry of Agrarian Policy and Food of Ukraine, has launched a regular review of damages and losses in the agricultural sector. The project aims to inform the general public and policymakers about compensation and recovery needs.

Methodology

The calculation approach used is based on the rapid damage assessment methodology developed by the World Bank and the FAO (Food and Agriculture Organization of the United Nations). This assessment will later be supplemented by an analysis of agricultural losses resulting from the war.
"Damage" refers to the monetary value of tangible assets that were destroyed (and stolen) or partially damaged (yet still repairable or restorable) due to hostilities and occupation. "Losses," in turn, represent foregone income—for instance, from unplanted fields, lower crop yields, and increased production costs.
The report relies on indirect methods of damage assessment. For these calculations, baseline indicators are determined: the volume of resources located in territories affected by active hostilities prior to Russia's full-scale invasion. Estimated damage coefficients, defined for each category of damaged assets, are then applied to these baseline indicators. A more detailed description of the methodology is available on the web page of the KSE Institute Center for Food and Land Use Research.