World Bank Raises Ukraine Reconstruction Cost Estimate to Nearly $486 Billion

The prime minister highlighted the extensive damage across various sectors, including trade, industry, agriculture, energy, and transport, contributing to nearly $499 billion in total losses as of the end of 2023. The housing sector, with 10% of all housing either destroyed or damaged, is among the hardest hit. The agricultural sector and environmental conditions have also worsened significantly. Shmyhal emphasized the necessity for Russia to finance the recovery, proposing the use of income from frozen Russian assets as a step towards full confiscation. He advocated for initiating recovery efforts this year, with $15 billion allocated for rapid recovery expected to generate about $5.5 billion in private investments. The prime minister outlined priority sectors for foreign investment, including the defense industry, energy, construction, agriculture, digital technologies, and IT. He also referenced the EU's Ukraine Facility program, which provides 50 billion euros over four years, and anticipated macro-financial support from the United States.