GDANSK, Poland–The World Council of Credit Unions’ CEO got an update on just how damaging economically Russia’s invasion of Ukraine has been to date.
Among the topline numbers: the invasion has forced 18% of Ukraine's economy to completely shut down, resulting in a national loss of more than $600 billion to date.
The information and other data was shared by Oleksandr Plodysti, Ukraine's consul general to Gdansk, Poland, during a meeting with WOCCU President and CEO Elissa McCarter LaBorde hosted by Poland’s National Association of Cooperative Savings and Credit Unions (NACSCU).
According to WOCCU, Plodysti said those economic losses are due to the death and displacement of Ukrainian civilians, as well as the physical devastation of Ukraine. Citing figures compiled the Ukrainian government, Plodysti said Russian forces have destroyed at least:
- 300 bridges.
- 324 health care facilities.
- 1,042 schools.
- 300 kindergartens.
‘Weighing on Credit Unions’
“Those economic impacts are weighing on credit unions in Ukraine,” WOCCU said. “Executives of credit unions that partner with World Council's Credit for Agriculture Producers (CAP) Project have told us the death, displacement and destruction is causing a liquidity issue for them, as many of their members simply are not in a position to pay back loans, while others are withdrawing savings at a high rate.”
In partnership with NACSCU President and World Council Board Chair Rafal Matusiak, McCarter LaBorde spent part of the week examining ways to help Ukrainian credit unions mitigate those liquidity concerns, WOCCU said.
Need for Food Security
With World Council providing agricultural lending support to more than 20 Ukrainian credit unions through our CAP Project, the organization reported McCarter LaBorde also talked with Plodysti about ways the organization can continue to provide more support to Ukrainian farmers through its partner credit unions.
According to WOCCU, Plodysti provided McCarter LaBorde with a recent letter the Ukrainian Ministry of Agrarian Policy and Food sent to the European Union Commissioner for Agriculture that outlines the greatest needs of the country’s 25,000 farmers. Specifically, WOCCU said the Ministry indicated a need for:
- 160 million euros worth of funding for the purchase of seeds, fuel, plant protection products and fertilizers
- 70 million euros worth of seeds for vegetables and soybeans
- 30 million euros worth of seeds for winter wheat
- 100 million euros for the conservation of cattle and other livestock
- 30 million euros for veterinary medicine and the development of animal husbandry
Other Meetings Held
World Council reported that last week it also held separate meetings in Poland with USAID and the United Nations Office for the Office of Coordinated Humanitarian Assistance (UNOCHA) about future opportunities to support Ukrainian agricultural needs through credit unions.
For additional information, WOCCU is also hosting a Ukrainian Crisis Response Blog.