As some of the mammoths

of industry get cut off their supply and shipping chains, Ukraine

might lose up to 4-5 percent of its gross domestic product in the

second half of 2014, according to Concord Capital investment bank

data.

One of the most

damaged elements of vital economic infrastructure that it taking many

hits is the railway. More

than 166 objects of railway infrastructure of the Donetsk,

Prydniprovsk and Southern railways have been damaged as a result of

military operations in May-July 2014, according to an Ukrzaliznytsya

spokesman.

There

also seems to be a pattern behind what might seem like random hits.

The damage is taken by the most important supply arteries of the

region, which is home to industrial giants responsible for a big

chunk of export-oriented commodities in Ukraine.

A

lot of damage at occurred along the main routes of Donetsk railway

(Chaplyne – Yasenuvata, Krasnoarmiysk –Gorlivka, Kostantynivka –

Debaltseve). These railroads are used to ship coke and coal from

Dnipropetrovsk to metallurgical plants.





Damage to key elements of infrastructure in the east of Ukraine might cause the loss of 4-5 percent of gross domestic product in the second half of 2014, according to some estimates. This infographic, designed by Kyiv Post+ with the technical assistance of Ukrainian Crisis Media Center, shows the scope of the problem.

Mykola

Topchiev, Head of Analytical Department of Ukrzaliznytsya, the

national rail carrier, says that such key enterprises as Azovsteel,

Yenakiyevo steel plant, Alchevsk steel integrated plant, Donetsk

steel plant, Donetsk metal works, Avdiivka coking plant, Stirol,

Severodonetsk union Azov are all under threat of, or have had their

supplies disrupted.

Donetsk

and Lugansk-based bluechips account for 23 percent of industrial

output of the country. But by now, because of the war, circulation of

their commodities fell 2.5 times, according to Oleksandr

Parashiy, head of the analytical department of Concorde Capital.

Passenger

traffic has been disrupted as well because of numerous explosions.

In fact, trains are not going to any other directions but via

Lozovaya – Kramatorsk – Konstantinovka. It has been the only

functioning railway route to Donetsk for about a month.

An

Ukrzaliznytsya spokesman said due to lost traffic alone in the past

seven month its losses have accounted for Hr 1.6 billion. Terrorist

actions have caused Hr 300 million of damage. But the whole industry

could lose up 10 times that much by the end of the year.

“Taking

into account the fact that Donetsk and Lugansk oblasts form 16

percent of national GDP, overall, Ukraine might lose 4-5 percent of

GDP in

the second half-year of 2014” says Parashiy.

Kyiv Post+ is a special project covering Russia’s war against Ukraine and the aftermath of the EuroMaidan Revolution.