Ukraine finance minister eyes reconstruction as war rages

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KYIV - The war is not over, but Ukraine's finance minister says the first signs of economic recovery are emerging after Russian troops retreated away from the capital and northern areas.

KYIV - The war is not over, but Ukraine's finance minister says the first signs of economic recovery are emerging after Russian troops retreated away from the capital and northern areas.

Cities have been levelled by fighting, infrastructure is shattered and over six million people have left Ukraine. Mr Marchenko said gross domestic product could contract by as much as 50 per cent, with the overall damage from the conflict totalling US$600 billion. After fierce Ukrainian resistance forced Russian troops to pull away from areas outside of Kyiv and from northern Ukraine, many residents have returned to the capital and businesses have reopened."Consumer demand is rising," said Mr Marchenko, who sported jeans and a mustard-coloured hoodie for the interview as - like other Ukrainian officials - the 41-year-old minister has traded his formal suit for more casual wear during the war.

If no default on the payment of the foreign debt or even its rescheduling is envisaged by Kyiv,"we need US$5 billion a month to cover the budget deficit," the minister said."We are asking for a high level of financial support but the price is also high. This for us is a way to survive," Mr Marchenko said.

Mr Marchenko said he backed using Russian assets seized abroad to rebuild Ukraine - an idea floated by several Western countries, including the United States.

 

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