The $524bn estimate marks growing needs provoked by Russia’s bombardment of Ukrainian cities and infrastructure as the war moves into a fourth year.
The estimated cost of reconstructing Ukraine three years after Russia’s full-scale invasion has risen to more than half a trillion US dollars, according to a new report.
The cost of rebuilding the country and reviving its economy stands at $524bn currently, predicted a study by the World Bank, United Nations, European Commission (EC) and Ukrainian government that was released on Tuesday. The total is nearly three times Ukraine’s expected 2024 economic output.
The estimate marks an increase of more than 7 percent compared with the institutions’ last report, which pitched the cost at $486bn a year ago.
The data, which covers damages incurred from the date of Russia’s full-scale invasion on February 24, 2022 to December 31, 2024, quantified the direct physical damage to buildings and other infrastructure, the effect on people’s lives and livelihoods, and the cost to “build back better”, the institutions said in a joint press release.
Housing, transport, energy, commerce and education were the most affected sectors. This included a 70 percent increase in damages to Ukraine’s energy infrastructure from Russian attacks.
About 13 percent of Ukraine’s total housing stock has been damaged or destroyed, affecting more than 2.5 million households.
The housing sector accounts for about $84bn of the total long-term needs, followed by transport at almost $78bn, energy and mining at close to $68bn, commerce and industry at more than $64bn, and agriculture, which has needs of $55bn.
The cost of debris clearance and management alone is pegged at almost $13bn, the report said.
The estimate excluded more than $13bn in needs across eight sectors that have already been met by Ukraine through the state budget and donor funds.
EC Commissioner for Enlargement Marta Kos said “the assessment highlights the extraordinary damage Russia has inflicted on Ukraine” and stressed that Ukraine’s economy must be integrated deeper into the EU single market to facilitate recovery.
Ukrainian Prime Minister Denys Shmyhal said “recovery needs have continued to grow due to Russia’s ongoing attacks,” adding that his government would prioritise rebuilding and repairing energy infrastructure and housing.
Daily air attacks
Ukraine marked three years of all-out war with Russia on Monday, with the two countries now swapping almost daily drone and missile attacks, many hitting vital infrastructure.
Air alerts were sounded across the whole of Ukraine early on Tuesday, as the air force warned of a huge spate of missile attacks.
The Ukrainian military said Russia launched seven missiles and 213 drones overnight. The airforce said it shot down six missiles and 133 drones, while another 79 drones did not reach their targets, likely due to electronic warfare.
A 44-year-old woman was injured and several houses damaged in the Kyiv region, Governor Mykola Kalashnyk said.
Amid the barrage, neighbouring Poland – a NATO member and base for planes belonging to allies in the military alliance – said it had scrambled aircraft to ensure its security.
Russia’s Ministry of Defence said air defence units intercepted and destroyed 19 Ukrainian drones overnight.