Cost of reconstruction, recovery in Ukraine amounts to $349B – joint assessment

This is stated in the joint assessment of the Government of Ukraine, the European Commission, and the World Bank, published today on the website of the European Commission.

“In a joint assessment released today, the Government of Ukraine, the European Commission, and the World Bank, in cooperation with partners, estimate that the current cost of reconstruction and recovery in Ukraine amounts to $349 billion (€349 billion). This figure is expected to grow in the coming months as the war continues,” reads the press release.

The Rapid Damage and Needs Assessment (RDNA) presents the first comprehensive evaluation of war impacts across twenty different sectors following the Russian invasion. It also lays out the financing needs for a resilient, inclusive, and sustainable recovery and reconstruction and provides a roadmap for planning.

“Ukraine is fighting for democracy and our common values. The EU cannot match the sacrifice Ukraine is enduring but we are mobilising all our instruments to address the most immediate needs, including for housing for internally displaced populations and to repair critical infrastructure,” President of the European Commission, Ursula von der Leyen, commented.

She noted that the EU had mobilised 10 billion euro in financing, humanitarian, emergency and military assistance for Ukraine since the start of Russia's brutal and illegal war of aggression against Ukraine. Another 5 billion euros in financing are in the pipeline.

“The EU will walk every step of the way with Ukraine to rebuild a democratic, independent and prosperous country on its path to the EU,” the President of the European Commission stressed.

"With joint efforts, we have already started reconstruction in the de-occupied Ukrainian territories, but reconstruction requires a comprehensive approach and the mobilization of joint resources of the Ukrainian government and international partners. The assessment of the destruction and the identification of reconstruction needs creates a solid basis for the national Reconstruction Plan and is a prerequisite for effective financing. After all, only for the first stage, rapid recovery, $17 billion is needed, of which Ukraine needs $3.4 billion already this year," the European Commission quotes Prime Minister of Ukraine Denys Shmyhal.

The assessment covers the impacts of the war sustained between February 24 and June 1, 2022, and found that physical damage from the war reached over US$97 billion (€97 billion). It was particularly high in the housing, transport, commerce and industry sectors. The destruction was concentrated in the Chernihiv, Donetsk, Luhansk, Kharkiv, Kyiv, and Zaporizhzhia region.

The RDNA results are preliminary, and damage and needs should be considered as minimums. The report found that recovery and reconstruction needs across social, productive, and infrastructure sectors total US$349 billion (€349 billion), which is more than 1.5 times the 2021 GDP of Ukraine.

Over the next 36 months the RDNA assesses that US$105 billion (€105 billion) is needed to address urgent needs such as restoring education and health systems and infrastructure, preparing for the upcoming winter through restoration of heating and energy to homes, support to agriculture, and repair of vital transport routes. The safe management of debris and explosives, including landmines, also pose a substantial cost.

“The World Bank and the European Commission confirmed their continued support for the Government of Ukraine. Given the ongoing war, there will be a need for future assessments of damage, loss and reconstruction/recovery needs in Ukraine.  The Swiss State Secretariat for Economic Affairs (SECO) has committed financial support for this purpose,” the document says.

On February 24, Russia launched a brutal and unprovoked invasion of Ukraine, targeting civilian infrastructure and population. The European Union, with the support of international partners, took the initiative to mobilize funds, in close coordination with the Government of Ukraine, for the reconstruction and restoration of the country after repelling Russian aggression.

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