Ukraine’s transport losses reached over $120 billion — more than the annual budget

Losses in the transport sector of Ukraine as a result of Russia’s full-scale aggression reached $121.128 billion.

This is approximately 115% of the total state budget of Ukraine for 2026, said Minister for Development of Communities and Territiries of Ukraine Oleksiy Kuleba in a column for the publication “Liga”. 

He noted that the scale of losses in transport and logistics infrastructure as a result of the war is so great that the state is objectively unable to fully cover them on its own, even if it directs half of the country’s budget to resuscitate the system. Therefore, the development and modernization of the industry requires large-scale involvement of private capital.

In the current conditions, resources should be primarily directed to security: this is the protection of port infrastructure, railway junctions, key road routes, border crossings and critical logistics hubs, Kuleba explained.

He emphasized that today security is the basic condition for the functioning of the economy. Despite the war, Ukraine maintains significant volumes of exports and imports, and therefore has a real market, real demand and potential for investment.

Transport continues to be an economic component of agricultural exports, metallurgy, imports of energy resources, industrial cargo, international trade with the EU.

“That is why we should look at logistics not as a separate sector, but as a comprehensive system of economic stability of the state. These are roads, railways, ports, checkpoints, warehouse infrastructure, multimodal solutions, digital management systems and mechanisms of public-private partnership,” the minister noted.

He added that public funds should be directed to security, critical recovery and stability, while private capital should be invested in development, modernization, new logistics routes, rolling stock, terminals, PPP projects.

“It is such a model that will allow not only to maintain the system during the war, but also to lay the foundation for post-war economic growth,” Kuleba summarized.

USM previously reported that the International Maritime Organization has officially launched the “IMO for Ukraine” project. The initiative provides practical support in the field of shipping safety, as well as the restoration and modernization of maritime infrastructure.