Ukraine may lose 1.3 percent of GDP amid Donbas blockade: central bank

The railway blockade in the industrial eastern region of Donbas could cost Ukraine 1.3 percent of its gross domestic product (GDP), the country's central bank governor Valeria Gontareva said on Thursday.

If the blockade continues, the Ukrainian economy will grow by 1.5 percent this year, instead of 2.8 percent estimated earlier, Gontareva told reporters during a press conference.

The blockade, which has resulted in the shortage of anthracite coal in Ukraine, may reduce the output of the electricity, steel and coke, putting pressure on public finances, Gontareva explained.

She said Ukraine may lose up to 2 billion U.S. dollars in exports revenues due to the blockade.

Since late January, Ukrainian activists have been blocking the movement of trains transporting coal and other raw products from the area in eastern Ukraine controlled by pro-independence insurgents to the government-managed territory.

The blockade has caused the energy crisis in the country, disrupting power supplies to the energy-intensive industrial enterprises. Endit