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9 Sep, 2022 15:42

Report estimates cost of reconstruction in Ukraine

Kiev, the EU Commission, and World Bank claim Ukraine will need over $349 billion to rebuild
Report estimates cost of reconstruction in Ukraine

The government of Ukraine, the European Commission, and the World Bank released a joint assessment on Friday, stating that the efforts to rebuild the country following the military conflict with Russia will cost over $349 billion.

The Rapid Damage and Needs Assessment (RDNA) suggests that the final cost of the project may yet increase as the conflict drags on. The assessment is hailed by the authors as the “first comprehensive evaluation of war impacts across twenty different sectors” which lays out the financing needs for a “resilient, inclusive, and sustainable recovery and reconstruction,” and provides a roadmap for the efforts.

European Commission President Ursula von der Leyen noted that the EU has already mobilized €10 billion ($10 billion) in financing, humanitarian, emergency, and military assistance for Ukraine, and that another €5 billion in financing is in the pipeline.

“The EU will walk every step of the way with Ukraine to rebuild a democratic, independent and prosperous country on its path to the EU,” she proclaimed in a statement attached to the assessment.

Ukrainian Prime Minister Denis Shmigal was also quoted as saying that for the first stage of rapid recovery, Kiev needs $17 billion, of which $3.4 billion is needed by the end of the year.

The report suggests that Ukraine needs $349 billion for recovery and reconstruction across the social, productive, and infrastructure sectors, noting that the sum is more than 1.5 times the 2021 GDP of Ukraine. It also states that the RDNA’s assessments of damages and needs should be considered “minimums.” 

The RDNA further suggests that Kiev will require at least $105 billion over the next 36 months to address urgent needs such as restoring the education and health systems and infrastructure, as well as preparing for the upcoming winter by restoring heating and energy to homes, and supporting agriculture and repairing vital transportation routes.

The World Bank and European Commission reiterated their continued support for Kiev, noting the need for future assessments of damage, loss, and recovery needs in Ukraine.

Last month, Bloomberg reported that Ukraine was asking foreign donors for hundreds of billions of dollars for reconstruction efforts, suggesting that the EU would foot the bill for the bulk of the assistance package and provide Kiev with over $500 billion for the task.

Ukrainian President Vladimir Zelensky also told a NATO conference in Madrid in June that Kiev had a “multibillion-dollar deficit” and needed $5 billion per month for its defense.