World Bank Revises Ukraine Reconstruction Costs

(MENAFN) The World Bank on Monday increased its estimate for Ukraine’s reconstruction costs to $588 billion, up from $524 billion in its previous assessment. The revised figure covers the next decade and represents nearly three times Ukraine’s projected 2025 gross domestic product, four years after the outbreak of war with Russia.

“With the support of development partners, the Government of Ukraine is taking significant steps to meet recovery and reconstruction priorities for 2026, including public investment projects and essential recovery support programs such as funding for destroyed housing, demining, and multisector economic support programs, totaling more than $15 billion,” the bank said in a statement.

The report highlighted that at least $20 billion in urgent needs have already been addressed since February 2022 through emergency repairs and early recovery efforts in sectors such as housing, energy, education, and transportation.

Direct damages in Ukraine are now estimated at over $195 billion, an increase from $176 billion in the previous report, with housing, transport, and energy being the hardest-hit sectors. The World Bank noted that most damage, losses, and reconstruction needs remain concentrated in frontline regions and major metropolitan areas.

In the energy sector, damaged or destroyed assets have risen by roughly 21% since last year, while the transportation sector has seen a 24% increase in reconstruction needs compared to the previous assessment.

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