It’s crucial to invest in critical infrastructure first: thesis from the event

On October 26, the CES with Bruegel and the Center for Economic and Policy Research held an event called “War in Ukraine: financing the victory”. Here is an interesting thesis from the speech of Maria Repko, deputy director of CES.

Ukraine had to cut all the spending down to the bone. In July, when there was no funding from abroad, Ukraine cut health care, education, and social spending by 25-30%

On the destraction: this is the lower margin of 127 million dollars of destroyed assets. It’s 4 billion dollars per week of these distractions.

People need money to recover their homes because winter is coming. And they gather money through crowdfunding, Facebook etc. But there is no money for it in the central budget.

On October 10, 30% of our energy infrastructure was destroyed. How can you work if you don’t know if there will be electricity? If this situation isn`t resolved, the taxes will drop, and the budget will receive less money. It’s crucial to invest in critical infrastructure first.

Many industries survived, and companies even improved their expectations. It’s still low. But it’s better than it was several months ago. Unfortunately, banks are not very keen to support the business because the risks are huge, and there’s no quarantine.