Ukraine needs up to 486 billion USD to rebuild the country

The cost of rebuilding Ukraine's economy after nearly two years of conflict could reach $486 billion, 2.8 times the country's projected economic output in 2023.

This is the figure given in a study conducted by the United Nations, the European Commission (EC), the World Bank (WB) and the Ukrainian government and published on February 15.

The World Bank said the $486 billion figure covers the period from when the conflict in Ukraine broke out on February 24, 2022, through December 31, 2023, and also quantified physical damage to buildings and other infrastructure, the impact on people's lives and livelihoods, and the cost of reconstruction.

An apartment building destroyed during the conflict in Izyum, Kharkiv region (Ukraine) in February last year. (Photo: AFP/TTXVN)

$486 billion is the estimated figure for reconstruction over 10 years, up from $411 billion given in March last year.

Of this, housing demand topped the list, accounting for 17 percent, or $80 billion, followed by transportation demand at $74 billion or 15 percent, and trade and industry at $67.5 billion, or 14 percent.

The report also said the direct damage from the conflict amounted to nearly $152 billion, with the damage mainly concentrated in the regions of Donetsk, Kharkiv, Lugansk, Zaporizhzhia, Kherson and Kiev.

Disruptions to economic output and trade, as well as other conflict-related costs such as clearing debris, could add an estimated $499 billion to the cost.

In addition, the $486 billion figure does not include reconstruction needs that have been met through the Ukrainian government 's budget or through international partners and assistance.

According to the report, Ukraine needs about 15 billion USD for urgent repair and reconstruction activities in 2024, of which 5.5 billion USD has been disbursed through the government budget and donor support.

The fact that more than $4 billion in foreign direct investment flowed into Ukraine in the first three quarters of 2023 shows that good investment opportunities are seen in the country, said Arup Banerji, the World Bank's Eastern Europe Country Director.

(Source: vietnamplus)

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