WASHINGTON, Nov 10 ― Ukrainian Economy Minister Yulia Svyrydenko yesterday said Russia’s attacks on civilian infrastructure and rolling blackouts could result in a bigger contraction of gross domestic product in 2022 than the earlier forecast of a 35 per cent drop.
Svyrydenko, in Washington to meet with senior US officials, told reporters the Ukrainian government would continue to need foreign budgetary assistance, but was also taking steps to reduce costs by cutting staff and privatizing smaller state-owned enterprises.
Ukrainian President Volodymyr Zelensky last month said his country would need US$38 billion to cover next year's expected budget shortfalls, and an initial US$17 billion to begin work on the most urgent infrastructure repairs.
Svyrydenko, who also serves as first deputy prime minister, said those sums had not yet been revised to reflect the massive damage inflicted on civilian infrastructure by Russia since October 10, and resulting electricity outages.
She said people and businesses in the capital Kyiv were dealing with blackouts of six or more hours a day, affecting economic output.
“The problem is that companies are not working. If the blackouts are going to continue during the next few weeks, GDP might fall more,” she said, citing ministry estimates that economic output dropped by as much as 39 per cent in October, after a contraction of 35 per cent in the August-September timeframe.
Asked about comments from Republican leaders in Congress suggesting they would curtail US aid to Ukraine, Svyrydenko said Ukraine's fight was an existential one and the world order would change if it lost.
She said she had not met with any Republican leaders, but noted that the United States had consistently made good on its promises since the war began on February 24.
Biden yesterday said Washington had not given Ukraine “a blank check” but he expected US aid to continue despite a likely Republican takeover of the House of Representatives.
Ukraine was providing clear records about its spending of international aid, she said, adding that work was continuing on setting up a coordinating platform for international funds.
Her talks with US officials were largely technical, focused on specific needs including transformers, generators and even LED light bulbs that could help save power.
Svyrydenko said Ukraine is also seeking a yearlong extension of the suspension of US steel tariffs to help steelmakers, and she discussed the issue with US Trade Representative Katherine Tai and other US officials.
Tai's office did not address the steel tariffs, but said the US trade chief encouraged Kyiv to enact reforms to create a more conducive business investment.
Tai and Svyrydenko also agreed to work to upgrade a bilateral 2008 trade and investment accord to support Ukraine’s efforts to establish a more transparent and predictable business environment.
Svyrydenko also met on Tuesday with US Commerce Secretary Gina Raimondo, who pledged continued support for Ukraine, including help to rebuild infrastructure. ― Reuters
