Value considers damage caused to the country's infrastructure in the war, as well as the impact on lives and livelihoods
The cost of rebuilding Ukraine's economy after the Russian invasion in 2022 will be $486 billion, almost 3 times the country's estimated nominal GDP (Gross Domestic Product) in 2023.
The amount includes direct damage to infrastructure and people's lives, as well as costs associated with reconstruction, as shown in a new joint study carried out by the World Bank, UN, European Commission and the Ukrainian government released this Thursday (15.Feb.2024 ). Read the complete (PDF – 114 kB, in English).
According to Ukrainian Prime Minister Denys Shmyhal, the sectors most impacted by the ongoing war, which has been going on for almost 2 years, were: trade, industry, agriculture, energy and transport.
“Ukraine’s reconstruction needs amount to almost $486 billion. Of this total, US$15 billion must be allocated to rapid recovery. We observed that reconstruction needs continued to grow over the last year”, said the premier.
“This growth is particularly evident in the housing sector, where 10% of the total housing stock has been destroyed or damaged by enemy actions”he completed.
The 3rd Damage and Recovery Needs Assessment for Ukraine covers the period from the Russian invasion on February 24, 2022, to December 31, 2023. It quantifies direct damage to buildings and other infrastructure, as well as the impact on people's lives and livelihoods.
The report indicated that direct damage from the war totaled almost $152 billion, mainly in the regions of Donetsk, Kharkiv, Luhansk, Zaporizhzhya and Kherson and the capital Kiev.
Furthermore, it was estimated that disruptions to economic production and trade, along with other war-related costs such as debris removal, could add around $499 billion.
The new estimate does not include reconstruction needs already met from the Ukrainian state budget or through international partners and support.
According to the Ukrainian prime minister, the main resource for Ukraine's recovery should be the confiscation of frozen Russian assets. “We should start this process later this year. We see the use of proceeds from Russian assets as a possible interim solution that does not preclude the need for total confiscation.”said Shmyhal.
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