 "A resident stands in her flat in an apartment building hit by a Russian missile strike, amid Russia's attack on Ukraine, in Zaporizhzhia, Ukraine. File image/ Reuters")
According to the World Bank, United Nations, European Commission, and Ukrainian government, the estimated cost of reconstructing Ukraine’s economy following Russia’s invasion has increased to $524 billion, which is over three times its projected economic production in 2024.
Data from Russia’s invasion three years ago to December 31 was included in a new analysis by the institutes. The study found that Russian strikes had increased the damage to Ukraine’s energy infrastructure by 70%.
Compared to the previous estimate of $486 billion a year earlier, it indicated a rise of more than 7%. The sectors most impacted were housing, transportation, energy, commerce, and education.
The research measures the impact on people’s lives and livelihoods, the direct physical damage to buildings and other infrastructure, and the cost to “build back better,” according to a joint news release from the insitutions.
During a meeting with French President Emmanuel Macron, U.S. President Donald Trump told reporters that an agreement may be achieved in weeks and is working to end the war through separate negotiations with Russia and Ukraine.
“In the past year, Ukraine’s recovery needs have continued to grow due to Russia’s ongoing attacks,” Ukraine’s Prime Minister Denys Shmyhal said in a statement.
Ukraine’s government has allocated $7.37 billion to address priority needs for 2025, with support from donors, but still has a financing gap of nearly $10 billion, the joint statement said.
Impact Shorts
More ShortsThe latest assessment, using a universal methodology to assess damages and needs, found that direct damage in Ukraine from Russian attacks has risen to $176 billion from $152 billion reported in February 2024.
About 13% of Ukraine’s total housing stock has been damaged or destroyed, affecting more than 2.5 million households.
It cited a 70% increase in damaged or destroyed assets in the energy sector since the last assessment one year ago, including power generation, transmission, distribution infrastructure and district heating.
The housing sector accounted for about $84 billion of the total long-term needs, followed by transport with almost $78 billion, energy and mining with almost $68 billion, commerce and industry with over $64 billion, and agriculture with over $55 billion.
The cost of debris clearance and management alone was pegged at almost $13 billion, the report said.
Antonella Bassani, the World Bank’s vice president for Europe and Central Asia, said the assessment showed the progress Ukraine has already made on physical and economic recovery, reforms and reconstruction needs.
It excluded over $13 billion in needs across eight sectors that have already been met by Ukraine with the support of its partners and the private sector. That includes some $1.2 billion disbursed from state budget and donor funds for housing needs and over 2,000 km (1,243 miles) of emergency road repairs.