DAVOS, Jan. 23 - Ukraine's army operation in the east has a significant effect on its financial status, Ukrainian Finance Minister Natalie Jaresko said.

"We are daily spending $5-7 million on this war," she told reporters at the Ukrainian Breakfast arranged by the Pinchuk Foundation at the World Economic Forum in Davos.

The Ukrainian finance minister also mentioned sizable expenditures linked to the growing numbers of internally displaced persons, which had exceeded 650,000, and free supply of gas, electric power and heating to the uncontrolled lands in the Donetsk and Luhansk regions which had led to $1 billion losses in the ongoing winter season.