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The estimated cost of recovering Ukraine's economy after a large-scale invasion by Russia has reached $524 billion, nearly three times its expected 2024 output, the World Bank, the United Nations, the European Commission and the Ukrainian government have concluded.
A new study by the institutions, including data from the start of the Russian invasion three years ago to December 31, 2024, includes a 70 percent increase in damage to Ukraine's energy infrastructure from Russian attacks.
It showed an increase of over 7 percent from the last estimate of $486 billion a year ago, as housing, transportation, energy, trade and education were identified as the most affected sectors, Reuters reports.
The study assesses direct physical damage to buildings and other infrastructure, the impact on people's lives, and the cost of "best reconstruction," the institutions said in a joint press release.
US President Donald Trump is trying to end the war through separate talks with Russia and Ukraine, and told reporters during a meeting with French President Emmanuel Macron that a deal could be reached within weeks.
"Over the past year, Ukraine's recovery has continued to be hampered by Russia's continued attacks," Ukrainian Prime Minister Denys Shmyhal said.
The Ukrainian government has allocated $7.37 billion to address the most priority needs by 2025, with support from donors, but there remains a funding gap of nearly $10 billion, the institutions said in a joint statement.
The latest calculation, using a universal methodology for calculating damages and needs, found that direct damages from Russian attacks on Ukraine have increased to $176 billion, up from $152 billion reported in February 2024.
About 13 percent of Ukraine's residential properties have been damaged or destroyed, affecting over 2.5 million households.
The report cited a 70 percent increase in damages in the energy sector since the last calculation, made a year ago, including the production and distribution of electricity and local heating.
The housing sector needs about $84 billion for recovery, while the transportation sector needs almost $78 billion. The energy and mining sector needs about $68 billion, the trade and industry sector over $64 billion, and the agriculture sector over $55 billion.
The cost of clearing and managing the rubble alone was estimated to be worth about $13 billion, the report said./ REL
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