Ukraine’s reconstruction costs reach $486B – World Bank

Results of a Russian strike. Photo: Volodymyr Zelenskyy/X

The total cost of reconstruction and recovery from Russia’s aggression in Ukraine is $486 billion over the next decade.

The statement was made by the World Bank in today’s press release.

“After almost two years of Russia’s full-scale invasion of Ukraine, an updated joint Rapid Damage and Needs Assessment (RDNA3) released today by the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations currently estimates that as of 31 December 2023 the total cost of reconstruction and recovery in Ukraine is $486 billion over the next decade, up from $411 billion estimated one year ago,” the report states.

The report elaborates on expenditure by sectors, the highest estimated recovery and reconstruction needs are in housing (17% of the total), followed by transport (15%), commerce and industry (14%), agriculture (12%), energy (10%), social protection and livelihoods (9%), and explosive hazard management (7%). Across all sectors, the cost of debris clearance and management (and demolition where needed) reached almost $11 billion.

“We also have negative trends in the agricultural sector and environmental damage due to the Russian terrorist attack on the Kakhovka hydroelectric power plant and the mining of our lands,” said the Prime Minister Denys Shmyhal who took part in the presentation of the Third Damage and Recovery Needs Assessment for Ukraine (RDNA3) with the participation of the World Bank.

In 2024 alone, Ukraine will need around $15 billion for immediate reconstruction and recovery priorities at both the national and community level, with a particular focus on supporting and mobilizing the private sector alongside restoration of housing, soft infrastructure and services, energy, and transport.

The RDNA3 points out that while some $5.5 billion of this funding has been secured, from both Ukraine’s international partners and its own resources, about $9.5 billion yet needs to be funded.

Read also: War must end with Ukraine reaching its borders, we don’t consider other options – Syrskyi