Six months on, a look at the cost of Russia's invasion of Ukraine

Six months ago, Vladimir Putin ordered tens of thousands of Russian troops into Ukraine on a “special military operation” — a mass invasion on a scale unseen in Europe since World War Two.

Since then, tens of thousands of people have been killed, millions have fled and cities have been reduced to rubble by Russia's relentless bombardment.

Russia was widely perceived to have been preparing to claim a quick victory in Ukraine, but hopes of swiftly overthrowing Volodymyr Zelenskyy’s pro-Western government soon evaporated.  Six months on, many analysts expect the conflict to be a long, grinding “war of attrition” that causes widespread death, destruction and displacement in Ukraine — it has already extolled a high price on the country and its people — and is costly for Russia too. 

Reversal of fortunes

Russian troops in recent months have pulled out of Snake Island and occupied areas, such as Crimea and Kherson (which Russian commanders have reportedly fled). Russian forces are also witnessing an increasing number of Ukrainian strikes in what could be the start of a much-vaunted counteroffensive by Kyiv’s forces to retake its lost territory in the south.

On Thursday, Ukraine claimed that over 44,300 Russian soldiers have died in the current conflict but that could be an exaggeration; the US believes it could be more around the 15,000 mark. The last official death toll Russia’s defense ministry released was in March, with the number totaling 1,351.

US to announce $3 billion in military aid to Ukraine 

Six months after Russia's invasion of Ukraine, President Joe Biden announced Wednesday that he is sending $2.98 billion in new military aid to Ukraine that will enable forces there to fight for years to come.

In a statement, Biden said the aid will allow Ukraine to acquire air defense systems, artillery systems and munitions, drones and other equipment “to ensure it can continue to defend itself over the long term.” The announcement comes as Ukraine is celebrating its 1991 declaration of independence from the Soviet Union.

Ukraine was ‘reborn after Russian invasion: Zelenskyy

Ukraine was “reborn” when Russia invaded six months ago, President Volodymyr Zelenskyy said Wednesday as his country observed its Independence Day marked by fears that Moscow may step up its attacks. Kyiv’s international allies offered praise and new promises of military aid to mark the occasion, with President Joe Biden announcing a package of nearly $3 billion that he said would allow the country to acquire weapons to defend itself over the long term.

Draghi: Italy has stockpiled 80% of natural gas reserves 

Italy's push to rapidly reduce its dependence on Russian natural gas has made the country less vulnerable to an interruption of supplies, Premier Mario Draghi said Wednesday, noting that the country has stockpiled 80 per cent of its capacity of gas reserves ahead of winter and is on track to hit 90 per cent by October.

Draghi told an annual summertime festival in the Adriatic seaside town of Rimini that Italy has reduced its reliance on Russian natural gas from 40 per cent last year to half that by finding new sources in countries from Algeria to Azerbaijan.

The fuel is used to heat and cool homes, generate electricity and run factories. Italy could be completely independent of Russia by fall 2024 if it installs two new regasification plants, he added.

EURO beaten down

The euro is down more than 12% so far this year. Further cuts in supplies of Russian gas will particularly hit the major Eurozone economies that depend on it, such as Germany and Italy

GROWING PAINS

Agri markets whipsawed after the invasion but have proved remarkably flexible since. Wheat and corn - Ukraine and Russia's key exports - have swooped right back down after an initial price surge, while Moscow’s main source of income, oil, is now fetching less than when the invasion started

INFLATION PALPITATIONS

The surge in energy and food prices, in combination with post-pandemic supply strains, have driven inflation rates around the world to levels last seen in the 1970s. This has had widespread ramifications for bond markets, especially where borrowing costs have ballooned and default worries deepened