Ukraine needs US$524bn for recovery and reconstruction

Three years after the beginning of Russia's full-scale invasion of Ukraine, the total cost of reconstruction and recovery in Ukraine is estimated at US£524 billion over the next decade, which is 2.8 times the country's nominal GDP for 2024. Source: data from Ukrainian government, World Bank Group, European Commission, UN Details: The fourth Rapid Damage and Needs Assessment (RDNA4), which covers losses from 24 February 2022 to 31 December 2024, shows that direct damage in Ukraine has now reached US£176 billion, up from US£152 billion in the RDNA3 assessment of February 2024.

The most affected sectors are housing, transport, energy, trade and industry and education.

The current estimate indicates that 13% of the total housing stock has been damaged or destroyed, impacting over 2.5 million households. In the energy sector, the number of damaged or destroyed assets - including power generation, transmission, distribution infrastructure and district heating - has increased by 70% compared to the previous assessment. The oblasts closest to the front line - Donetsk, Kharkiv, Luhansk, Zaporizhzhia, Kherson, and Kyiv oblasts - account for approximately 72% of the total damage.

The highest reconstruction and recovery needs are in the housing sector (almost US£84 billion), followed by transport (almost US£78 billion), energy and extractive industries (almost US£68 billion), trade and industry (almost US£64 billion), and agriculture (over US£55 billion). Across all sectors, debris clearance and waste management alone will cost nearly US£13 billion. Background: As of the end of 2023, the estimated cost of Ukraine's post-war recovery had risen by US£75 billion, reaching US£486 billion.

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