The staggering amount needed for Ukraine's reconstruction over the next 10 years has been named
Kyiv • UNN
The World Bank has estimated Ukraine's needs for recovery and reconstruction at $524 billion by 2034. The housing sector, transport, and energy were the most affected, with direct losses of $176 billion.
Ukraine's reconstruction needs are estimated at nearly $524 billion over the next decade. The housing sector, transport and energy have been the most affected, with total direct damages of $176 billion, according to the updated joint Rapid Damage and Needs Assessment (RDNA4) released today by the World Bank, reports UNN.
As of December 31, 2024, the needs for recovery and reconstruction over the next decade are estimated at nearly $524 billion; this includes needs in both the public and private sectors
As noted by the UN Representation in Ukraine, the current assessment, three years after the full-scale invasion of Russia in Ukraine, is approximately 2.8 times higher than the projected nominal GDP of Ukraine for 2024.
According to the UN Representation, in 2025, with the support of donors, the Government of Ukraine allocated $7.37 billion ($7.12 billion) to address priority needs in areas such as housing, education, healthcare, social protection, energy, transport, water supply, demining and civil protection. "The overall financing gap for recovery and reconstruction needs in 2025 is $9.96 billion ($9.62 billion). Mobilizing the private sector remains critical for the successful recovery of Ukraine", the statement said.
The RDNA4 assessment, covering the damage incurred over nearly three years from February 24, 2022 to December 31, 2024, shows that the direct damage in Ukraine has now reached $176 billion ($170 billion), compared to $152 billion ($138 billion) in the RDNA3 assessment released in February 2024.
Which sectors have been hit the hardest
The most affected sectors are the housing sector, transport, energy, trade and industry, as well as education.
According to the current assessment, 13% of the total housing stock was damaged or destroyed, affecting over 2.5 million households.
In the energy sector, the number of damaged or destroyed facilities has increased by 70 percent since the RDNA3 assessment, including production, transmission, distribution infrastructure and centralized heat supply.
About 72% of the total damage is concentrated in all sectors located closest to the line of contact in the Donetsk, Kharkiv, Luhansk, Zaporizhzhia and Kherson regions, as well as the Kyiv region.
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Where the most funds are needed
Of the total long-term needs, the highest reconstruction and recovery needs are in the housing sector, nearly $84 billion ($81 billion). This is followed by the transport sector, nearly $78 billion ($75 billion), energy and extractive industries, nearly $68 billion ($66 billion), trade and industry, over $64 billion ($62 billion) and agriculture, over $55 billion ($53 billion). In all sectors, the costs for just clearing the debris and managing it reach nearly $13 billion ($12.6 billion).
The assessment has identified and excluded needs of over $13 billion ($12.6 billion) in eight sectors that Ukraine has already met with the support of partners and the private sector. For example, according to the government, in 2024, at least $1.2 billion ($1.1 billion) from the state budget and donor funds was allocated for the restoration of the housing sector. Over 2,000 km of roads, highways and other state roads have been repaired on an emergency basis.
The private sector has met some of the urgent needs, which, as noted, underscores its important role in the recovery and reconstruction process. "Many companies have started investing in repair work and increasing resilience, including through distributed generation solutions such as gas power plants, solar panels and biogas. According to preliminary IFC estimates, the private sector can potentially provide a third of the total needs, which is a significant complement to public investment", the statement said.
The RDNA4 also emphasizes that the prioritization of investments in recovery and reconstruction will be crucial for Ukraine's accession to the EU and its long-term resilience. These efforts are aimed at restoring the country's infrastructure, reviving its economy and strengthening the institutional structure in line with EU standards. Recovery not only provides an opportunity to restore what has been destroyed by the ongoing invasion, but also to rebuild the country on the principle of "better than before", implementing innovative solutions and reforms that meet the demands for EU membership. The RDNA4 conclusions complement the reform and investment program of Ukraine's Plan for the next three years.
The assessment underscores the extraordinary damage that Russia has inflicted on Ukraine. The EU is already supporting the reconstruction and recovery of Ukraine, mobilizing more private investment through the Ukraine Investment Framework and helping the country to deeper integrate into the EU Single Market. This will be the key to Ukraine's recovery and create new opportunities for Ukrainian and European businesses
