Initial Cost of Industrial Infrastructure Restoration

by Olha Povaliaieva
Monday, June 19, 2023
Initial Cost of Industrial Infrastructure Restoration

The damage caused by Russia to Ukrainian heavy industry today amounts to $18 bln

UkraineInvest CEO Serhiy Tsivkach said during the Kyiv conference FIT for Ukraine: Investment Innovations that the restoration of industrial facilities after military damage today costs $14 billion. Unfortunately, the level of destruction is so huge that the restoration of infrastructure (factories, gas pipelines, power lines, equipment etc.) will take from 10 years. Next, Ukraine will need another $4 billion to restart the business itself, which was destroyed by the Russian war.

"We have to develop new solutions and completely new investment mechanisms. Moreover, we should not wait for victory, we should support business here and now. First of all, I mean the support of small and medium-sized enterprises," Serhii Tsivkach.

Currently, we are talking only about direct damages (destruction of premises, flooding of houses, blowing up of factories and destruction of enterprises), but even more, damages are indirect (damage to business and economy, harvest and social situation). And while the war continues, the amount increases.

Currently, Ukraine's government and specialised enterprises are preparing a plan to stabilise and restore the economy, primarily based on impact investing. For this, Ukraine and international partners will attract state and donor funding and private investments. The position of Ukraine will also be strengthened by insurance of military risks.

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