25.02.2025 23:10
The World Bank, the European Union, the United Nations, and the Kiev government have reported that Ukraine needs $524 billion for its reconstruction and recovery.
As the Russia-Ukraine War marks three years, the "Fourth Rapid Damage and Needs Assessment" report has been published.
UKRAINE'S RECONSTRUCTION AND RECOVERY WILL COST 524 BILLION DOLLARS
The report prepared by the World Bank, the European Union (EU), the United Nations (UN), and the Ukrainian government states that the cost of Ukraine's reconstruction and recovery is estimated to be 524 billion dollars over the next 10 years by December 31, 2024. The report indicates that this amount is approximately 2.8 times Ukraine's projected nominal Gross Domestic Product for 2024.
FINANCING GAP OF 9.96 BILLION DOLLARS
The report mentions that the Ukrainian government has allocated 7.37 billion dollars (7.12 billion euros) for priority areas such as housing, education, health, social protection, energy, transportation, water supply, mine clearance, and civil protection with the support of donors in 2025. However, it also states that there is a total financing gap of 9.96 billion dollars (9.62 billion euros) for recovery and reconstruction needs. The report emphasizes the importance of mobilizing the private sector for Ukraine's successful recovery.
DIRECT DAMAGE IN UKRAINE REACHED 176 BILLION DOLLARS
The report analyzes the damage incurred during the approximately three-year period from February 24, 2022, to December 31, 2024, stating that direct damage in Ukraine has reached 176 billion dollars (170 billion euros). It points out that this amount exceeds the direct damage figure of 152 billion dollars reported in the third report released in February 2024.
HOUSING SECTOR MOST AFFECTED
The report indicates that the most affected sectors include housing, transportation, energy, trade, industry, and education. It notes that 13% of the total housing stock in the country has been damaged or destroyed, affecting more than 2.5 million households. In the energy sector, there has been a 70% increase in damaged or destroyed assets, including electricity generation, transmission, distribution infrastructure, and district heating, since February of last year. The report highlights that the long-term reconstruction and recovery needs in the housing sector are the highest at approximately 84 billion dollars, followed by transportation at around 78 billion dollars, energy and mining at approximately 68 billion dollars, trade and industry at 64 billion dollars, and agriculture at 55 billion dollars.
COST OF DEBRIS REMOVAL WILL REACH 13 BILLION DOLLARS
The report states that the cost of debris removal and management alone across all sectors has reached approximately 13 billion dollars. It emphasizes that prioritizing recovery and reconstruction investments is critical for Ukraine's EU accession and long-term resilience.