The cost of rebuilding Ukraine's economy after the Russian invasion has risen to $524 billion, almost three times the country's projected GDP for 2024, according to a new study jointly prepared by the World Bank, the UN, the European Commission and the Ukrainian government and cited by "Reuters".
The report, covering the period from the start of the Russian invasion to December 31, 2024, reports a significant increase in destruction, with energy, housing, transport, trade and education being particularly hard hit.
According to the report, direct destruction in Ukraine has increased from $152 billion to $176 billion in just one year. The energy sector has been hit hardest, with damage increasing by 70%. Damage includes destroyed or severely damaged power plants, the electricity grid, distribution infrastructure and district heating.
13% of the country's housing stock has been destroyed or damaged, affecting over 2.5 million households. The report says the largest needs will be for: housing - $84 billion; transport infrastructure - $78 billion; energy and mining - $68 billion; trade and industry - $64 billion and agriculture - $55 billion.
In addition, the cost of clearing rubble and waste management will amount to almost $13 billion.
The Ukrainian government has already allocated $7.37 billion for the most urgent needs for 2025, but despite assistance from international donors, a deficit of almost $10 billion remains.
While Ukraine and international institutions seek financial solutions for reconstruction, US President Donald Trump continues to insist on an end to the war through separate negotiations with Russia and Ukraine. During his meeting with French President Emmanuel Macron, Trump said that an agreement could be reached within weeks.
The World Bank’s Vice President for Europe and Central Asia, Antonella Bassani, stressed that the assessment demonstrates the progress made in Ukraine’s economic recovery, but also highlights the urgent need for international support.
The topic of financing Ukraine’s recovery is expected to be a leading topic in the upcoming international meetings of the G-7 and G-20 leaders.