According to a joint report by the World Bank, United Nations, European Commission, and the Ukrainian government, the projected cost to rebuild Ukraine's economy after Russia's invasion has surged to $524 billion, nearly triple its anticipated 2024 economic output.
The study, encompassing data from Russia's invasion three years ago to December 31, indicated a 70% spike in damages to Ukraine's energy infrastructure due to Russian attacks. This marks a 7% increase from the prior estimate of $486 billion a year ago, with housing, transport, energy, commerce, and education being the most impacted sectors.
The analysis assesses direct physical damage to structures, livelihoods, and the cost to "build back better," as mentioned in a joint news release by the institutions.
Ukrainian Prime Minister Denys Shmyhal stated, "In the past year, Ukraine's recovery needs have continued to grow due to Russia's ongoing attacks," emphasizing the government's allocation of $7.37 billion for 2025's priority needs.
The report highlights a rise in direct damages from Russian attacks to $176 billion, up from $152 billion in February 2024. Notably, 13% of Ukraine's housing inventory has been damaged or destroyed, impacting over 2.5 million households.
Key long-term needs include $84 billion for housing, almost $78 billion for transport, nearly $68 billion for energy and mining, over $64 billion for commerce and industry, and more than $55 billion for agriculture. The cost for debris clearance and management alone is estimated at almost $13 billion.
Antonella Bassani, the World Bank's vice president for Europe and Central Asia, acknowledged Ukraine's progress in physical and economic recovery, reforms, and reconstruction but highlighted a funding shortfall of nearly $10 billion despite the government's $7.37 billion allocation and support from donors.