Ukraine reconstruction may cost $349 billion

The cost of rebuilding Ukraine after the hostilities will be $349 billion, the European Commission, Kyiv, and the World Bank have said in a joint statement.

According to Kommersant, the parties note that this figure will increase in the near future as the conflict continues.

The European Commission, Kyiv, and the World Bank have prepared rapid damage and needs assessment (RDNA). The parties assessed the impact of the Russian troop deployment in 20 different sectors of Ukraine's economy. The document also describes Ukraine's financial needs in the area of "sustainable, inclusive, and resilient recovery".

According to the report, Ukraine's needs for the restoration of social and production spheres, as well as infrastructure total $349 billion. The parties note that this amount is 1.5 times higher than Ukraine's GDP in 2021.

RDNA estimates that about $105 billion will need to be spent on urgent needs in the next 36 months. This money will be used to rebuild infrastructure in education and health, heating, energy, and transport systems, as well as to develop agriculture. The document notes that the money is also needed for demining.

In June, the Ukrainian president's office estimated the country's reconstruction after the hostilities at $1 trillion. In late August, Ukrainian President Volodymyr Zelenskyy said that Ukraine's reconstruction would cost $600-800 billion. The European Investment Bank planned to raise 100 billion euros for this purpose. On September 6, Ukrainian Prime Minister Denys Shmyhal said that the country's overall reconstruction would cost $326 billion.

Earlier, Ukraine and the EU suggested that Russian assets, which were blocked due to sanctions, could be used to finance Ukraine's reconstruction. In March, Finance Minister Anatoliy Siluanov said that about half of Russia's international reserves ($300 billion out of $640 billion) had been frozen due to sanctions.