Latest Estimate: Ukraine's Reconstruction to Cost $588 Billion

(Patria) - The reconstruction of the Ukrainian economy will cost $588 billion over the next ten years, the World Bank, United Nations, European Commission, and Ukrainian government announced today, ahead of the fourth anniversary of Russia's full-scale invasion of the country, reports Reuters.

The latest estimate, based on data from February 24, 2022, to December 31, 2025, shows a 12% increase compared to last year's report, partly due to a 21% rise in damaged or destroyed energy infrastructure.

The study does not include data on intensified Russian attacks on energy facilities earlier this year, which left tens of thousands of people without heating, electricity, and water during one of the coldest winters in decades.

Total direct damage is estimated at $195 billion, an increase of almost 11% from the previous estimate.

The most affected sectors are housing, transport, and energy, with damage particularly concentrated along the front lines and in major urban centers, including the capital Kyiv.

Ukrainian President Volodymyr Zelensky is facing pressure from US President Donald Trump to agree to a ceasefire deal that could include territorial concessions to Russia.

However, talks between Russia and Ukraine held last week in Geneva did not yield progress.

The war has caused the largest refugee crisis in Europe since World War II, with over six million Ukrainians living as refugees abroad and an additional 4.6 million internally displaced persons.

At the same time, the country's gross domestic product has shrunk by 21% in real terms compared to the pre-invasion period.

The report states that the housing sector has suffered the most damage, with about 14% of the housing stock destroyed or damaged, valued at $61 billion, while significant losses were also recorded in transport and energy, where some citizens face power outages of up to 18 hours a day.

The Ukrainian government has already allocated approximately $15.25 billion for reconstruction this year, while Ukraine and its partners have spent over $20 billion on emergency repairs since the beginning of the war.

The report emphasizes that the private sector could cover about 40% of the reconstruction needs, with the implementation of economic reforms and attracting investments.

United Nations representatives point out that the return of refugees, reintegration of veterans, and greater participation of women in the labor market will be key to the country's long-term economic recovery, emphasizing that Ukraine's greatest resource is its population.