Ukraine’s agriculture has suffered significant losses as a result of the full-scale armed aggression by the Russian Federation. According to estimates by experts from the National Scientific Center “Institute of Agricultural Economics,” by the beginning of 2025, the total direct losses in the agricultural sector amounted to $11.2 billion.
This is reported by Finway
Structure of Agricultural Sector Losses
The largest share of losses is attributed to the destruction and damage of agricultural machinery — $6.5 billion, which accounts for 58% of the total amount. In particular, farmers have lost about 30,000 tractors, 2,500 combines, 11,000 seeders, and 8,700 plows. Significant losses have also been incurred due to the destruction and incapacitation of grain storage facilities, estimated at $1.9 billion (17%). Another $1.9 billion (17%) is related to the theft and loss of production factors and finished products, while other types of damage amount to $0.9 billion (8%).
“Efforts to overcome the negative consequences of the armed aggression of the Russian Federation against Ukraine for the restoration of investment and logistical support for agricultural production should begin now,” emphasized Oleksandr Zakharchuk, head of the investment and logistical support department at the Institute of Agricultural Economics, corresponding member of the NAAS.
Post-War Recovery Directions for the Agricultural Sector
Experts have identified a number of priority measures that need to be implemented to overcome the consequences of the war and ensure sustainable development of the agricultural sector. Among them:
- creating a favorable investment climate to attract funds for the production of domestic machinery and launching joint ventures for the manufacture of innovative, high-performance, and environmentally friendly equipment;
- simplifying business procedures and the permitting system, reducing bureaucratic barriers;
- implementing a state protectionist policy to limit the import of low-quality machinery through the establishment of quotas and increasing customs duties;
- restoring state programs for financing the reconstruction and development of domestic agricultural engineering;
- stimulating the production of mini-machinery at the state level;
- involving households and small farms in state-targeted support programs for the agricultural sector;
- creating a most-favored-nation regime for critical machinery imports by reducing the tax burden;
- evacuating agricultural engineering enterprises and their personnel from combat zones, as well as preparing new specialists for the industry.
Implementing these steps will ensure the rapid recovery of the agro-industrial complex, increase its efficiency, and contribute to strengthening Ukraine’s food security.