Ukraine reconstruction bill rises to $588 billion

The reconstruction of Ukraine will require approximately $588 billion over the next decade – around 12 per cent more than estimated last year. That is according to a joint report by the World Bank, the United Nations, the European Commission and the Ukrainian government.

Direct damage has already reached $195 billion, with housing, transport and energy infrastructure among the hardest hit sectors. The energy system in particular faced intensified Russian attacks last year, further worsening the situation.

The war has also triggered the largest refugee crisis in Europe since the Second World War. More than six million Ukrainians are living abroad, while millions more are internally displaced.

In real terms, the country’s economy is about one-fifth smaller than before the invasion. However, the report’s authors argue that targeted reforms could attract private capital and cover up to 40 per cent of reconstruction needs.

(reuters, pir)