Ukraine needs $588bn to rebuild from Russia’s invasion — Report

Ukraine needs $588 billion to rebuild from the destruction caused by Russia’s four-year invasion, a figure almost three times the country’s annual economic output, the World Bank and other institutions said in a report Monday.

The estimated total is 12 percent higher than the amount given last year, amid a winter of devastating Russian attacks on Ukrainian energy infrastructure that left millions of people without heating and power.

Four years of war have decimated Ukraine’s economy, reduced entire towns and cities to rubble and forced millions to flee their homes.

Kyiv’s Western allies have pledged hundreds of billions of dollars in aid to Ukraine since Russia invaded in February 2022, but Kyiv uses most of it for the war effort and to keep its economy afloat.

“Recovery and reconstruction needs continue to grow and are now estimated at US$587.7 billion over a 10 year horizon — equivalent to almost three times Ukraine’s 2025 GDP,” the report published jointly by the World Bank, Ukrainian government, United Nations and European Commission said.

The figure was calculated based on an assessment of damage caused up to December 31, 2025.

Since then, Russia has launched more devastating attacks on Ukraine’s energy grid, including waves of missile and drone strikes that have completely destroyed some power plants.

More than one in seven homes in Ukraine have been damaged or destroyed as a result of the war, the report said.

Reconstruction costs were highest in the transport sector, at an estimated $96 billion, followed by the energy and housing sectors at around $90 billion each.

Clearing debris and “explosives hazard management” — essentially de-mining efforts — will require $28 billion.

The frontline Donetsk and Kharkiv regions will need the most investment, while the capital Kyiv will require more than $15 billion to recover, the report showed.

Ukraine’s Western allies have allocated more than $400 billion in financial, military and humanitarian assistance to Ukraine since Russia’s invasion, according to data from the Germany-based Kiel Institute.

A planned EU loan of 90 billion euros ($106 billion) will mostly go towards covering Ukraine’s military expenses, with the rest earmarked for general budget support, Brussels said in January.

AFP