According to estimates by the World Bank, the UN, the European Commission and the Ukrainian government, the cost of rebuilding Ukraine’s economy after the Russian invasion is now estimated at 524 billion US dollars, almost three times the expected growth of the Ukrainian economy in 2024, on Tuesday, the 25th of February, reports Reuters.
The new study by the institutions included data from the start of the Russian invasion three years ago until the 31st of December.
Compared to the last estimate a year ago of 486 billion US dollars, it has grown by more than 7%,
with the housing sector, transport, as well as energy, trade and education taking the biggest hits.
The study estimates the direct physical damage to buildings and other infrastructure, the impact on people’s lives and livelihoods, and the costs needed to “rebuild back better”, according to a joint press release by the institutions.
French President Emmanuel Macron said after talks with Donald Trump at the White House on Monday that a ceasefire between Ukraine and Russia could be agreed in the coming weeks.
“Over the past year, the cost of rebuilding Ukraine has continued to rise due to Russian attacks,” Ukrainian Prime Minister Denis Shmyhal said in a statement.
The Ukrainian government has allocated 7.37 billion dollars to address priority needs in 2025, with support from donors, but there is still a funding gap of almost ten billion dollars, the joint statement said.
The latest assessment, using a universal methodology for assessing losses and needs, found that direct losses to Ukraine from Russian attacks have increased to 176 billion US dollars, compared to 152 billion US dollars reported in February 2024.
Approximately 13% of Ukrainian housing 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.
Of the total long-term needs, the housing sector required around 84 billion dollars, followed by the transport sector with almost 78 billion dollars, the energy and mining sector with almost 68 billion dollars, trade and industry with over 64 billion dollars and agriculture with over 55 billion US dollars.
The report says that the cost of clearing and managing debris alone amounted to almost 13 billion US dollars.
However, the calculation did not include the more than 13 billion US dollars needed for reconstruction work in eight sectors, which Ukraine has already implemented with the support of partners and the private sector. This includes some 1.2 billion dollars disbursed from the state budget and donor funding for housing, as well as for emergency repairs of more than 2 000 km of roads.
Antonella Bassani, World Bank Vice President for Europe and Central Asia, said that the assessment shows the progress Ukraine has already made in physical and economic recovery, reform and reconstruction.