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Romania could become huge logistics platform for Ukraine rebuilding investments

March 23, 2025

Ukraine's rebuilding process is likely to generate business of over $500 billion, and Romania can become a huge logistics platform these investments can start from, but we need dedicated legislation to favor the development of industrial parks, attract foreign capital and particularly boost the logistics sector, argues economic consultant Adrian Negrescu."Beyond Russian, American, and European interests, it is important to note that the war in Ukraine has reset the investors' perceptions of Eastern Europe, which is proof that Romania too stood to lose. Foreign investments in Romania dropped in 2024 to EUR 5.7 billion, 1 billion less than in 2023. The good news is that this negative perception can, however, be transformed into a huge opportunity. The end of the war, Ukraine's reconstruction process will generate a business worth over $500 billion. Romania can become a huge logistics platform these massive investments can start from, but for this we need special legislation to favor the development of industrial parks, attract foreign capital, and boost the logistics area in particular," Adrian Negrescu on Monday told Agerpres.In other words, beyond Putin's political, imperialist interests, the war in Ukraine had and has a strong economic character, Negrescu specified."The provinces under Russian occupation are rich in rare metals, with these resources appraised by the Ukrainians at over $1,000 billion dollars. The Russians want them to support their economy, the Americans are also interested therein, as evidenced by the tough negotiations conducted by Trump with Kyiv, even China has an interest in Ukraine, given that it holds over one third of this country's agricultural land under lease, from where they export huge amounts of grain to Beijing. Not only from the perspective of the rebuilding process are the stakes about Ukraine huge, but particularly from the perspective of access to this country's natural resources. If we were to draw a line after three years of Ukraine war, we see only one winner - the weapons industry, which has earned tremendous amounts from military procurements. War is the most profitable business, but only for those who fuel it," Negrescu also said.In his opinion, with the exception of arms manufacturers, the war in Ukraine was harmful for almost everyone."Beyond the enormous damage caused to the Ukrainian economy by the Russian military strikes, we are talking about the hundreds of billions of dollars that, instead of being allocated by Europeans, Americans and the other states involved for development, have gone into military procurements, therefore into the costs of an absurd war, unworthy of the modern society we claim to live in. For the global economy, the war unleashed by Putin has first of all reset access to resources, from energy and gas to wheat, corn and other cereals where Ukraine was one of the major exporters worldwide," Negrescu explained.He went on to say that Europe lost, first of all, access to Russian energy, gas and oil, which were very cheap resources before the war, and the competitiveness of the European economy, Romania's included, was greatly harmed."Russia quickly reoriented itself and expanded its resource exports to China, India, Turkey and other countries that, of course, jumped at the cheap offers coming from the Russians. For the Russians, however, even if at a first glance they appear to have managed to adjust to the restrictions, the future is uncertain. If China slips into an economic crisis or if India no longer accepts the Russians' oil prices, Putin's Russia will collapse economically, given that over 70% of its income is generated by resource exports. In other words, with this war, the Russians found themselves losing their most profitable market, the European Union, and this apart from the exodus of foreign capital; Russia has become a country that is no longer sought by investors. The U.S. also had to lose, overall. Despite unhoped for gains, as it massively expanded its oil and gas exports worldwide, let's not forget that the Americans have seen their economic interests in Ukraine shattered, and they are now trying to take them back. In addition, Washington has contributed hundreds of billions of dollars of American taxpayer money to the war bill. It's true that American arms companies have profited, but if it hadn't been for the war, the federal funds would have been allocated to other destinations," the economic consultant explained.

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