Ukraine proposes taxes on Russian goods to fund reconstruction

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Ukraine has proposed to its allies excise duties on Russian energy and raw materials after the end of the war, when the cost of rebuilding the country already far exceeds the value of frozen Russian assets.

Speaking at the presentation of a damage report to mark the third anniversary of Russia's invasion of Ukraine, Ukrainian Prime Minister Denys Shmygal on Tuesday insisted on the full confiscation of frozen Russian assets.

“Reconstruction needs already exceed the volume of frozen Russian assets ,” so the official raised the possibility of “introducing special taxes on Russian energy and raw materials after the war.”

Shmygal believes that Russia will be forced to pay for the damage caused by the war, while Ukraine will receive “significant resources for reconstruction” and a precedent will be created that will protect victims from possible future aggression.

“ During the year, the number of damaged or destroyed assets increased by 93%. These are colossal losses that we are replacing in real time,” he added, citing the housing and energy sectors, as well as infrastructures considered critical — medical and educational facilities, communications — as the most affected.

Shmygal cited a recent World Bank report that estimates the country's reconstruction needs at $524 billion (close to €500 billion), or $38 billion (€36 billion) more than previous estimates.

“Such high numbers mean that recovery must become a global project,” the minister stressed, arguing that “reconstruction must be done now.”

“The quality of life of millions of people, the prospects of Ukrainians returning from abroad and the creation of growth points that will advance our economy depend on this,” he insisted.

Russia invaded Ukraine on February 24, 2022 to “demilitarize and denazify” the neighboring country, as Russian President Vladimir Putin claimed at the time.

Three years later, the new President of the United States, Donald Trump, broke with the position of the administration of his predecessor, Joe Biden, and wants to negotiate an end to the conflict, in a process that includes access to minerals from Ukraine.