Ukraine Destroyed by War, Repair Costs US$ 411 Billion, Says World Bank

Ukrainian State Emergency Service press service/Handout via REUTERS

DELTASION.com – War with Russia has cost Ukraine dearly, with the World Bank estimating that it will cost at least US$ 411 billion to restore and rebuild the country's territories over the next decade. The report was jointly prepared by the Ukrainian government, the World Bank, the European Commission, and the United Nations, and was released on March 22, 2023. The repair cost estimate of US$ 411 billion is an increase from the initial estimate of US$ 349 billion released in September last year.

The Toll of the War on Ukraine

The report details the economic and human toll that the war with Russia has taken on Ukraine. Over 2 million homes were damaged, 1 in 5 public health institutions were damaged, 650 ambulances were damaged or stolen, and at least 9,655 civilians were confirmed dead, including 461 children.

Timeframe for Reconstruction

"Ukraine's reconstruction will take several years," says Anna Bjerde, World Bank Vice President for Europe and Central Asia. The report calculates the direct damage to buildings and infrastructure at US$ 135 billion, excluding the wider economic impact of the conflict that lasted for more than a year. By 2023 alone, Ukraine needs US$ 14 billion for critical and priority reconstruction and recovery investments.

IMF Funding for Ukraine

The International Monetary Fund (IMF) has reached a staff-level agreement with Ukraine for a four-year financing package worth around US$ 15.6 billion. This funding will go towards Ukraine's critical and priority reconstruction and recovery investments.

Humanitarian Aid

Despite the Russian onslaught, Ukraine continues to maintain essential public services, including keeping schools and hospitals open, paying teachers and civil servants' salaries, and paying pensions. The World Bank has noted that supporting these critical services continues to be a priority, and Ukraine needs an estimated US$ 3-4 billion per month to maintain them.

Damage to Energy Sector

The war has caused significant damage to Ukraine's energy sector, with Russia's targeted attacks on power grids and other energy centers over the winter causing the sector's biggest recent spike in damage. The total damage to the energy sector is now five times greater than last summer.

Priorities for 2023

Ukraine's Prime Minister, Denys Shmyhal, has identified energy infrastructure, housing, critical infrastructure, economy, and humanitarian demining as the top five priorities for restoration work in 2023. Shmyhal has also warned that the current damage figures and recovery needs do not include data on the loss of infrastructure, housing, and businesses in the occupied territories. Restoration work in these areas will begin once the war ends.

Conclusion

The World Bank's report on the cost of repairing and rebuilding Ukraine's territories destroyed by the war with Russia highlights the immense scale of the devastation caused by the conflict. The estimated cost of US$ 411 billion over the next decade underscores the urgent need for humanitarian aid and reconstruction efforts in Ukraine. The IMF's funding package and the prioritization of critical services and infrastructure by the Ukrainian government are essential steps towards rebuilding the country.