Ukraine reconstruction costs cross half-trillion-dollar mark: Study

A new report estimates that reconstructing Ukraine three years after Russia’s full-scale invasion would cost more than half a trillion US dollars.

According to a report released on Tuesday by the World Bank, United Nations, European Commission (EC), and Ukrainian government, the cost of rebuilding the nation and reviving its economy is currently estimated to be $524 billion. The total is nearly three times Ukraine’s expected 2024 economic output.

In comparison to the institutions’ most recent report, which estimated the cost at $486bn a year ago, the estimate is an increase of more than 7%.

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. In addition, the damage to Ukraine’s energy infrastructure increased by 70% as a result of 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.

According to the report, debris clearance and management alone cost almost $ 13 billion.

More than $ 13 billion in needs were excluded from the estimate, which included those covered by the state budget and donor funds.

According to Marta Kos, EC Commissioner for Enlargement, “the assessment highlights the extraordinary harm that Russia has done to Ukraine,” and it is necessary to integrate the country’s economy more fully into the EU single market to facilitate recovery.

According to Denys Shmyhal, the prime minister of Ukraine, “recovery needs have continued to rise as a result of Russia’s ongoing attacks,” and his government will prioritize rebuilding and renovating housing and energy infrastructure.

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.

Early on Tuesday, the air force issued an airstrike warning for a significant wave of missile attacks throughout Ukraine.

Overnight, Russia reported that it had launched 213 drones and seven missiles at the Ukrainian military. 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.

According to Governor Mykola Kalashnyk, a 44-year-old woman was hurt and several homes were damaged in the Kyiv region.

Poland, a NATO member and home to aircraft belonging to allies in the military alliance, announced in the middle of the barrage that it had scrambled its aircraft to protect its security.