The estimated cost of recovering Ukraine’s economy after Russia’s large-scale invasion has reached $524 billion, nearly three times its expected 2024 GDP, according to a joint conclusion from the World Bank, the United Nations, the European Commission, and the Ukrainian Government.
A new study from these institutions, based on data from the start of the Russian invasion three years ago to December 31, 2024, reveals a 70% increase in damage to Ukraine’s energy infrastructure due to Russian attacks.
The study showed a more than 7% increase from the previous $486 billion estimate made last year, with housing, transportation, energy, trade, and education being identified as the most affected sectors, reports Reuters, as transmitted by REL.
The study assessed direct physical damage to buildings and other infrastructure, its impact on people’s lives, and the cost of “better reconstruction,” according to a joint media statement from the institutions.
U.S. President Donald Trump is making efforts to end the war through separate negotiations with Russia and Ukraine and told reporters during a meeting with French President Emmanuel Macron that an agreement could be reached within weeks.
“Last year, Ukraine’s recovery continued to worsen due to Russia’s ongoing attacks,” said Ukrainian Prime Minister Denys Shmyhal.
The Ukrainian government has allocated $7.37 billion to address the most urgent needs in 2025, with support from donors, but there remains a financial gap of nearly $10 billion, according to the joint statement from the institutions.
The latest calculation, using a universal methodology for assessing damage and needs, found that the direct damage from Russian attacks in Ukraine has increased to $176 billion, from $152 billion reported in February 2024.
About 13% of Ukraine’s residential assets have been damaged or destroyed, affecting over 2.5 million families.
The report mentioned a 70% increase in damage to the energy sector since the last calculation made a year ago, including production and distribution of electricity and local heating.
The housing sector needs around $84 billion for recovery, while the transportation sector requires nearly $78 billion. The energy and mining sectors need around $68 billion, trade and industry sectors over $64 billion, and agriculture needs more than $55 billion.
The cost of clearing and managing debris alone is estimated at around $13 billion, according to the report.
