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World Bank: Ukraine’s reconstruction needs reach $524 billion

Ukraine requires $524 billion for reconstruction over the next decade—nearly triple its 2024 GDP—with housing, transport, and energy sectors suffering the most damage as the 2025 funding gap reaches $10 billion.

byOlena Mukhina

25/02/2025

2 minute read

The damaged interior of the building in the center of Odesa following a Russian attack on 31 Jan. 2025. Credit: Governor Oleh Kiper

World Bank: Ukraine’s reconstruction needs reach $524 billion

The total cost of reconstruction and recovery in Ukraine is estimated at $524 billion over the next decade, which is approximately 2.8 times the country’s projected nominal GDP for 2024, according to the new Ukraine Recovery and Reconstruction Needs Assessment by the World Bank.

Since 2022, Russia’s war against Ukraine has destroyed thousands of buildings, hospitals, cultural objects, and infrastructure facilities. Earlier, Prime Minister Denys Shmyhal stated that Ukraine’s reconstruction would cost €500 billion. He emphasized that European companies could invest in the country’s recovery efforts.

With donor support, the Ukrainian government allocated $7.37 billion in 2025 to address priority needs in housing, education, healthcare, social protection, energy, and other sectors. However, the total funding gap for recovery and reconstruction in 2025 amounts to $9.96 billion.

The direct damage in Ukraine has now reached $176 billion, compared to $152 billion in February 2024.

The most affected sectors are housing, transport, energy, trade and industry, and education. According to the latest assessment, 13% of the total housing stock has been damaged or destroyed, affecting over 2.5 million households.

In the energy sector, the number of damaged or destroyed facilities, including power generation, transmission, distribution infrastructure, and district heating, increased by 70% in the February assessment. Approximately 72% of the total damage is concentrated in sectors located near the front-line regions—Donetsk, Kharkiv, Luhansk, Zaporizhzhia, and Kherson—as well as the Kyiv oblasts.

In the long term, reconstruction and recovery needs are highest in the housing sector, requiring nearly $84 billion. This is followed by the transport sector—$78 billion; energy and extractive industries—$68 billion; trade and industry—over $64 billion; and agriculture—over $55 billion. Across all sectors, the costs for debris clearance and management alone amount to nearly $13 billion.

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