The $524 billion estimate reflects the escalating needs brought about by Russia’s continuous bombardment of Ukrainian cities and infrastructure as the conflict enters its fourth year.
As of now, the cost of rebuilding the nation and stimulating its economy is projected at $524 billion, almost three times Ukraine’s expected economic output in 2024.
This estimate is a 7 percent increase from the last report, which put the cost at $486 billion a year ago.
The study, encompassing damages from Russia’s full-scale invasion starting February 24, 2022, to December 31, 2024, quantifies physical damage to infrastructure, the impact on people’s lives and livelihoods, and the cost of ‘building back better,’ as stated in a joint press release by the institutions.
The hardest-hit sectors include housing, transport, energy, commerce, and education, with a notable 70 percent increase in damages to Ukraine’s energy infrastructure due to Russian attacks.
Approximately 13 percent of Ukraine’s housing stock has been damaged or destroyed, affecting over 2.5 million households.
Estimates show that housing needs total around $84 billion, followed by transport at nearly $78 billion, energy and mining at about $68 billion, commerce and industry over $64 billion, and agriculture with needs of $55 billion.
Costs for debris clearance and management are estimated at nearly $13 billion, according to the report.
The assessment does not include over $13 billion in needs across eight sectors that Ukraine has already addressed through the state budget and donor funds.
EC Enlargement Commissioner Marta Kos stated that “the assessment highlights the severe damage Russia has inflicted on Ukraine” and the need for Ukraine’s economy to be more closely integrated with the EU single market for recovery.
Ukrainian Prime Minister Denys Shmyhal noted, “Recovery needs have continued to escalate due to Russia’s ongoing attacks,” and emphasized that his government will prioritize rebuilding and repairing energy infrastructure and housing.
Daily Air Attacks
Ukraine marked three years of full-scale war with Russia on Monday, with the two countries now regularly exchanging drone and missile attacks, many targeting crucial infrastructure.
Air alerts were issued across Ukraine early on Tuesday, as the air force warned of significant missile attacks.
The Ukrainian military claimed Russia launched seven missiles and 213 drones overnight. The air force said it intercepted six missiles and 133 drones, and another 79 drones did not reach their targets, possibly due to electronic warfare.
A 44-year-old woman was injured, and several houses were damaged in the Kyiv region, according to Governor Mykola Kalashnyk.
Amid the attacks, neighboring Poland – a NATO member and a base for allied aircraft – scrambled planes to ensure its security.
Russia’s Ministry of Defense stated that air defense units intercepted and destroyed 19 Ukrainian drones overnight.
