Ukraine: Post-war reconstruction set to cost $ 524 billion

Updated shared speed and needs assessment (RDNA4) Order Ukrainian Government, the World Bank group, the European Commission and UN, comes as crowded Russian entirely invasion enters its fourth year.

It covers the damage caused since the enhanced conflict broke out 24. February 2022. until 31. December 2024. Years.

This year, The Government of Ukraine, with the support of the donor, allocated 7.37 billion dollars (7.12 billion euros) to resolve priority areas Such as housing, education, health, social protection, energy, transport, water supply, demining and civil protection.

As a Total Success gap of $ 9.96 billion (50 billion euros) For the needs of recovery and renovation, the mobilization of the private sector remains critical.

Russian attacks continue

“In the last year, Ukraine continued to grow for recovery for Russian ongoing attacks,” said Prime Minister Denys Shmyhal.

RDNA4 reveals that Direct damageIn Ukraine, it has now reached $ 176 billion (170 billion euros), more than 152 billion (138 billion euros) from the previous estimate issued in February 2024. years. The most difficult sectors are housing, transport, energy, trade and industry and education.

Thirteen percent of all housing stocks in the country is damaged or destroyedthat affect more than 2.5 million households. The energy sector has also experienced 70 percent increase in damage or destroyed assets, including electricity production, transmission, distribution infrastructure and district heating

Housing hard hit

Through all sectors, the Regions closest to the Front – Donetsk, Kharkov, Luhansk, Zaporizhzhia, Kherson and Kiev – have suffered about 72 percent of total damage.

Reconstruction and recovery needs are the highest in the accommodation, making almost 84 billion dollars (81 billion euros)) total long-term needs.  The transport sector follows in almost 78 billion dollars (75 billion euros), with the energy sector and extractives that approach almost 68 billion dollars in the third place (66 billion euros).

Meanwhile, the revival of trade and industry will require over $ 64 billion (62 billion euros), and the agriculture over $ 55 billion (53 billion euros).

The assessment noticed that the Russian invasion continues to have serious influences on the Ukrainian agricultural sector, which previously contributed to 10 percent in GDP, employed 14 percent of the workforce and operated over 40 percent of all exports.

In addition, Over all sectors, the cost of approval and management of debris reach almost $ 13 billion(12.6 billion euros).

Private Sector Support

RDNA4 identifies and excludes over $ 13 billion (12.6 billion) in the needs in eight sectors that Ukraine has already met, with the support of partners and private sectors.

For example, government data show that at least 1.2 billion dollars (1.1 billion euros) were paid from state budgets and donor funds for the recovery of the housing sector, while There were over 2,000 km from emergency repairs on the highwaysHighways and other national roads.

Furthermore,The private sector has completed some critical needsEmphasizing its key role in the recovery and renovation process, and many companies started investing in repairs and resistance. Estimates show that the private sector could potentially cover a third of total needs.

Investment and inclusion

UN Humanitarian coordinator in Ukraine, Matthias Schmale, noted that “Real cost of war is measured in human lives and means for life“And the international community must help create more opportunities for Ukrainians to renew their life with dignity.

“This means investing in dignified tasks, education, health and priority in the involvement of vulnerable groups among women and girls, children, displaced persons, Roma communities, war veterans and people with disabilities, “he said.

“The way forward requires strengthening partnership, unfair investment and unwavering commitment to all of us do not help only structure, but support the renewal of the community’s social fabric in the war.”

RDNA4 also points out that priority investments in recovery and renovation will be critical for the accession of Ukraine to the European Union (EU) and long-term resistance.

Thus, the recovery provides an opportunity not only deals with the destruction caused by current invasion, but also to achieve the improvement of innovative solutions and reforms that meet the expectations of EU membership.