World Bank estimates overall cost of Ukraine's reconstruction after war's first anniversay

WORLD  23 March 2023 - 15:00

Ukraine’s reconstruction and recovery needs have grown to $411 billion, just over a year since Russia’s invasion, the World Bank said on March 22.

The assessment, made jointly by Ukraine’s government, the World Bank, the European Commission and the United Nations, is an increase from the $349 billion estimated in a report released in September, writes Euractiv.

The latest evaluation expects Kyiv to require $14 billion for critical and priority reconstruction and recovery investments in 2023.

Meeting these needs will call for $11 billion in financing beyond what Ukraine’s government has already addressed in its 2023 budget, according to the assessment.

Russia’s invasion of Ukraine in February 2022 has displaced millions of people, and global food and energy prices surged in the fallout from the war.

“Energy infrastructure, housing, critical infrastructure, economy and humanitarian demining are our five priorities for this year,” Ukraine’s Prime Minister Denys Shmygal said in a statement.

He added that part of the reconstruction work has already been done.

But Shmygal warned that “the amount of damage and recovery needs currently does not include data on the loss of infrastructure, housing and businesses in the occupied territories.”

When the defence forces release them, authorities will start restoration work in these territories, he said.

But the $411 billion needed is 2.6 times the country’s estimated gross domestic product for 2022.

The highest expected needs are in transport, followed by housing and energy.

Ukraine’s reconstruction will “take several years,” said the World Bank’s vice president for Europe and Central Asia, Anna Bjerde.

She added that support for public investment also needs to be “complemented by significant private investment to increase the available financing for reconstruction.”

The report released on March 22 said that estimates “should be considered as minimums as needs will continue to rise as long as the war continues.”

But the damage has not surged as much as it could have, in part because the worst of the conflict has been limited to areas that have already been significantly damaged.

Some of the country’s needs have been met as well by Ukraine’s government, with support from its partners.

Allies have rushed to pump aid into the country since the conflict broke out.

The war has tipped 7.1 million people into poverty, undoing 15 years of development progress and worsening inequalities, the assessment said.

Direct damage to buildings and infrastructure comes to more than $135 billion, it added.

Caliber.Az