Ukraine’s Reconstruction Needs Estimated at $486 Billion Over the Next Decade

by Roman Cheplyk
Tuesday, February 20, 2024
Ukraine’s Reconstruction Needs Estimated at $486 Billion Over the Next Decade

The Government of Ukraine, in collaboration with the World Bank Group, the European Commission, and the United Nations, released the RDNA3 report, detailing the updated assessment of damages and recovery needs due to Russia’s full-scale invasion

The comprehensive analysis reveals a staggering $486 billion required for rebuilding efforts over the next ten years, marking an 18% increase from the previous estimate of $411 billion.

Direct damages across Ukraine have amounted to nearly $152 billion, with housing, transport, trade and industry, energy, and agriculture being the most impacted sectors. The report identifies Donetsk, Kharkiv, Luhansk, Zaporizhzhya, Kherson, and Kyiv regions as the hardest hit, with 10% of the national housing stock either damaged or destroyed.

Key recovery areas for 2024 include housing and communal services ($3.1 billion), transport and logistics ($2.3 billion), energy ($2.7 billion), social infrastructure ($2.4 billion), industry and services ($3.6 billion), and cross-sectoral priorities ($1.2 billion). Of the $15.3 billion required for critical projects in 2024, approximately $5.5 billion is secured, leaving a funding gap of about $10.5 billion.

The recovery process emphasizes reforms aligned with EU policies and standards, focusing on "rebuilding better" principles. The RDNA3 priorities will be integrated into medium-term budget planning, ensuring timely, predictable funding and enhancing public sector capacity for comprehensive recovery activities.

Since the last RDNA2 assessment, Ukraine, with international support, has made significant progress in urgent recovery efforts, including infrastructure repairs and providing temporary housing solutions. Over 2,000 km of roadways and 200 km of railway infrastructure have been restored, and approximately 500 educational institutions along with over 3,500 bomb shelters have been rehabilitated.

You will be interested