Economic Impact of Ukraine’s Attack on Russia’s Kursk Region

MOSCOW (Reuters) – 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.

On August 6, Ukraine launched the biggest foreign attack on Russia since World War Two, breaching the border into the Kursk region with thousands of troops supported by drones and heavy weaponry, including Western-made arms.

Kursk is a significant grain producer in Russia, contributing 4% to the total grain harvest last year. Russia is the world’s largest wheat exporter.

Governor Alexei Smirnov stated, “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,” during a public meeting with senior officials at Russia’s agriculture ministry.

Earlier on Wednesday, pro-Moscow war bloggers and a senior Russian commander reported that Russian forces had commenced a significant counter-offensive against Ukrainian troops in Kursk.

Smirnov mentioned that “the estimated damage has amounted to tens of billions of rubles and is increasing.” His public presentation provided a preliminary estimate of 85 billion roubles ($934.07 million).

He indicated that harvesting grains could not be completed on an area of 160,000 hectares. Oilseed crops amounted to 500,000 metric tons, and sugar beet reached 700,000 tons, with significant damage or transportation out of Russia.

According to the governor’s report, over 300,000 tons of grain remain in warehouses in territories currently occupied by Ukrainian forces. Furthermore, Smirnov reported significant livestock losses, including over 350,000 pigs and cattle dead.

($1 = 91.0000 roubles)