Conflicts and their consequences

Classification and assessment of losses from the armed conflict in Donbas and annexation of Crimea

Economic Annals-XXI

Economic Annals-ХХI: Volume 184, Issue 7-8, Pages: 107-123

Citation information:
Ivanov, S., Yudina, S., Lysa, O., & Drahun, A. (2020). Classification and assessment of losses from the armed conflict in Donbas and annexation of Crimea. Economic Annals-XXI, 184(7-8), 107-123. doi: https://doi.org/10.21003/ea.V184-10

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Serhii Ivanov
D.Sc. (Economics),
Professor,
Corresponding Member of the NAS of Ukraine,
Honored Scientist of Ukraine,
Head, Department of Analytical Economics and Management,
Dnipropetrovsk State University of Internal Affairs
26 Gagarin Ave., Dnipro, 49005, Ukraine
ivanovsv@abkdnipro.com
ORCID ID: https://orcid.org/0000-0002-1205-3797

Svitlana Yudina
D.Sc. (Economics),
Professor,
Head, Department of Finance and Accounting,
Dniprovsk State Technical University
2 Dniprostroevskaya Str., Kamenske, 51900, Ukraine
yusv0763@ukr.net
ORCID ID: https://orcid.org/0000-0001-8318-4172

Olena Lysa
PhD (Economics),
Associate Professor,
Lecturer,
Department of Finance, Banking and Insurance,
Oles Honchar Dnipro National University
72 Gagarin Ave., Dnipro, 49010, Ukraine
o_lysa@dnu.dp.ua
ORCID ID: https://orcid.org/0000-0002-1870-0481

Andrii Drahun
PhD Student (Economics),
Department of Marketing and Logistics,
Ukrainian State University of Chemical Technology
8 Gagarin Ave, Dnipro, 49005, Ukraine
peshorin@gmail.com
ORCID ID: https://orcid.org/0000-0002-8285-3378

Classification and assessment of losses from the armed conflict in Donbas and annexation of Crimea

Abstract. The authors classify and investigate the losses caused by the military conflict in the east of Ukraine and the annexation of Crimea, as well as the approaches to their assessment. The authors studied the results of scientific research, current legislation, and information-analytical materials and came to the conclusion that there are no common standards (approaches) or detailed approaches to loss assessment for different entities (state, individual enterprises, and citizens), and the mechanism of compensation for losses is undeveloped as well. This can cause many problems both for experts in substantiating the volume of damages and for courts in considering relevant cases for losses.

The authors considered the damage caused to Ukraine by the military conflict with Russia, which resulted in the annexation of the Crimean peninsula and the occupation of Luhansk and Donetsk regions, and interpreted this damage as assessed consequences of these events and classified them by place and time of manifestation on direct, indirect, complete and general, and by spheres of manifestation of consequences on medico-biological, military-political, socio-economic, external and internal political and ecological ones.

To characterize each of these types of damage, the authors have identified certain components that can have quantitative and qualitative forms of expression. Taken into account that the qualitative assessment of the consequences of armed conflict is subjective to some extent and depends on the coverage of expert opinions, the authors focused on those components that can be quantified (in monetary terms). To assess them, in the article there were formed certain groups of indicators that have a quantitative form of expression. At the same time, first of all, the authors take into account indicators that make it possible to assess the direct damage from the armed conflict.

The authors, based on the analysis and generalization of the values of these indicators in the dynamics, determine the estimated amount of direct damage caused to Ukraine during the conflict (2014-2019), and give a forecast of its growth if this conflict continues. Also, we propose the option of calculating the lost benefit from the impossibility of using a part of the country’s territory (currently uncontrolled) based on its potential.

Keywords: Loss; Military Conflict; Crimea; Donbas; Temporarily Uncontrolled Territories; Damage Assessment; Lost Benefit

JEL Classіfіcatіon: E62; E65; H56; H72

Acknowledgement and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V184-10

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Received 2.07.2020
Received in revised form 20.07.2020
Accepted 26.07.2020
Available online 10.09.2020

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