Ukraine now needs over half a trillion dollars for reconstruction over the next decade as Russia’s invasion continues into its third year, a joint assessment released on 25 Feb. by Ukraine’s government and international partners shows.
The Russian military regularly attacks Ukrainian energy and civilian infrastructure with various types of weapons almost daily. Russia denies targeting civilian infrastructure in Ukraine. Ukrainian authorities and international organizations classify these strikes as war crimes and emphasize their deliberate nature.
The updated Rapid Damage and Needs Assessment (RDNA4) estimates total reconstruction costs at $524 billion (€506 billion) over the next ten years, approximately 2.8 times Ukraine’s estimated GDP for 2024, according to the report by Ukraine’s government, the World Bank, European Commission and United Nations.
“In the past year, Ukraine’s recovery needs have continued to grow due to Russia’s ongoing attacks,” said Prime Minister of Ukraine Denys Shmyhal. “The fourth phase of the Rapid Damage and Needs Assessment remains vital to our recovery strategy.”
The assessment documents direct damage totaling $176 billion, up from $152 billion in February’s previous assessment, with housing, transport and energy among the hardest-hit sectors.
About 13 percent of Ukraine’s total housing stock has been damaged or destroyed, affecting more than 2.5 million households. The energy sector saw a 70 percent increase in damaged assets since the previous assessment.
Regions closest to the frontline sustained about 72 percent of the total damage, the report states.
For 2025, Ukraine and donors have allocated $7.37 billion for priority recovery, but a financing gap of nearly $10 billion remains.
The private sector has begun investing in repairs and resilience solutions, with earlier estimates suggesting it could potentially cover a third of total reconstruction needs.
The housing sector has the highest reconstruction needs at almost $84 billion, followed by transport ($78 billion), energy ($68 billion), commerce and industry ($64 billion), and agriculture ($55 billion).
“The assessment highlights the extraordinary damage Russia has inflicted on Ukraine,” said EU Commissioner for Enlargement Marta Kos.
“Ukraine and its people continue to show incredible resilience in the face of severe damage, untold suffering, and personal loss,” said Antonella Bassani, World Bank Vice President for Europe and Central Asia.
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