Ukraine ‘fires Himars into Russia for first time’ & the precarious future of the Ukrainian economy
Jun 3, 2024
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Guests discuss Ukraine firing Himars into Russia, the future of the Ukrainian economy, and potential consequences if Putin wins. They explore military resources, economic impact, GDP growth, and engaging with Ukrainian diaspora communities. The podcast also covers updates from the battlefront and international relations, highlighting Ukrainian resilience and determination.
Ukraine's military exports contribute to GDP growth, supported by duty-free EU exports and stable banks.
Labor shortages due to mobilization lead to production challenges, higher wages, and impact daily life.
Russian attack on printing house disrupts book production, causes financial strain, and threatens publishing industry.
Deep dives
Ukraine's Strong Military Industrial Complex and Resource Export Boosting Economy
Ukraine's military industrial complex, including 200 domestic drone producers and the innovative sea drones, have led to an increase in exports, contributing to the 3.2% GDP growth. This growth is supported by duty-free exports with the European Union and external financing, ensuring stable banks and a functioning economy, despite challenges in domestic markets.
Labor shortages due to mobilization, leading to people working unofficially, hiding or fleeing, are affecting various industries across Ukraine. Companies are compelled to offer higher salaries to attract workers, causing production challenges. The metro reducing service due to staffing shortages highlights the broader impact of the labor crisis on daily life and economic activities.
Russian Attack on Ukraine's Printing Press Devastates Industry
The recent Russian attack destroyed over 50,000 books, printing equipment, killed seven employees, injured 22, resulting in nearly 5.4 million euros in damages. The attack on Harkiv's printing house threatens Ukraine's publishing industry, disrupting book production and causing financial strain on printing press owners and employees.
Challenges in Securing Financial Support and Reconstruction Efforts
While Ukraine receives external financing to support its economy, challenges remain for long-term financial aid and reconstruction efforts. The estimated 480 billion USD cost for Ukraine's recovery underscores the monumental task ahead. Seizing Russian assets could alleviate financial burdens, but political caution and concern for global precedents hinder decisive actions.
Emphasizing the Need for Military Support for Ukraine's Victory
While discussions on financial aid and reconstruction persist, the primary focus should be on providing Ukraine with the military resources necessary for victory in the conflict. Limitations on weapon use in Russian territory hinder Ukraine's ability to decisively fend off Russian advances, highlighting the critical need for robust military support for Ukraine's ultimate success on the battlefield.
Today, we bring you updates from the battlefront as Ukrainian forces hold the Russian advance near Vovchansk, a Russian armoured column is hit in Kursk and we delve into the latest news and analysis around the Ukrainian economy.
Contributors:
David Knowles (Head of Audio Development). @djknowles22 on X.
Dom Nicholls (Associate Editor, Defence). @DomNicholls on X.
Francis Dearnley (Assistant Comment Editor). @FrancisDearnley on X.
With thanks to Liliane Bivings (Business Editor, The Kyiv Independent). @LilianeBivings on X.
Articles referenced:
'What if Putin Wins?' Essay Series:
For seven days The Telegraph is running a series of exclusive essays from prominent international commentators imagining the consequences if Russia were successful in its war. The essays so far are:
'With Ukraine’s resources, Putin would be unstoppable' (Liliane Bivings)