The economic damage from Ukraine’s attack on Russia’s mainly agricultural Kursk region is estimated at almost $1 billion, with more than 150,000 people evacuated since the start of the incursion, the regional governor said on Wednesday.
Ukraine on Aug. 6 launched the biggest foreign attack on Russia since World War Two, bursting through the border into the Kursk region with thousands of troops supported by swarms of drones and heavy weaponry, including Western-made arms.
Kursk is a major grain producer in Russia, contributing 4% to the total grain harvest last year. Russia is the world’s largest wheat exporter.
“The introduction of a federal emergency regime and a counter-terrorist operation regime in the region have had a significant impact on the region’s economy,” Governor Alexei Smirnov said in a publicly broadcast meeting with senior officials at Russia’s agriculture ministry.
Earlier on Wednesday, pro-Moscow war bloggers and a senior Russian commander said Russian forces had begun a significant counter-offensive against the Ukrainian troops in Kursk.
Smirnov said “the estimated damage has amounted to tens of billions of rubles and is increasing”. His public presentation, shown during the event, provided a preliminary estimate of 85 billion roubles ($934.07 million).
He said the harvesting of grains could not be completed on an area of 160,000 hectares, while oilseed crops amounting to 500,000 metric tons and sugar beet amounting to 700,000 tons had been damaged or transported out of Russia.
According to the governor’s figures, more than 300,000 tons of grain remain in warehouses in territory currently occupied by Ukrainian forces. Smirnov also reported significant livestock losses, with over 350,000 heads of pigs and cattle dead.
($1 = 91.0000 roubles)
Analysis:
The article highlights the severe economic impact of Ukraine’s attack on Russia’s Kursk region, estimating nearly $1 billion in damages. This event has disrupted the region’s agricultural production, affecting grain harvests and livestock. The conflict has also led to the evacuation of thousands of people and the initiation of counter-offensives by Russian forces. The repercussions of this attack can have far-reaching consequences on the global grain market and Russia’s position as a major wheat exporter. Investors and individuals in the financial market should monitor developments in this conflict closely as it could impact commodity prices and geopolitical stability.