Enormous war damage

Ukraine: Reconstruction costs 524 billion dollars

The war damage in Ukraine is enormous. The costs of any reconstruction are far higher than the country's economic output.(Bild: APA/AFP/Genya SAVILOV)

The estimated cost of rebuilding the Ukrainian economy after the Russian invasion three years ago has risen to 524 billion dollars (500.67 billion euros). According to a study published on Tuesday by the World Bank, the UN, the EU Commission and the Ukrainian government, this would be three times Ukraine's expected economic output for 2024.

Compared to an estimate a year ago, costs have risen by over seven percent. The sectors most affected are housing construction, transport, energy, trade and education.

Ongoing attacks by Russia
"Over the past year, Ukraine's reconstruction needs have continued to rise due to Russia's ongoing attacks," explained Ukrainian head of government Denys Shmyhal. The study shows a 70 percent increase in damaged or destroyed assets in the energy sector since the previous assessment a year ago. Power generation, transmission, distribution infrastructure and district heating were particularly affected.

13 percent of homes damaged
The Ukrainian government, with the support of donors, has allocated 7.37 billion dollars to meet priority needs for 2025. However, according to the statement, there is still a funding gap of almost ten billion dollars.

The latest assessment, which used a universal damage and needs assessment methodology, found that direct damage in Ukraine from Russian attacks has increased from 152 billion dollars in February 2024 to 176 billion dollars. Around 13 percent of Ukraine's total housing stock was damaged or destroyed, affecting more than 2.5 million households.

The study quantifies the direct physical damage to buildings and other infrastructure, the impact on people's lives and livelihoods. It also includes costs for "better reconstruction", it said.