Rebuilding Ukraine’s economy after Russia’s invasion nearly two years ago is expected to cost $486 billion, 2.8 times the country’s expected economic output in 2023, a new study by the World Bank, the United Nations, the European Commission and the Ukrainian government, transmits Reuters.
The assessment, released Thursday, covers the period from Russia’s invasion on February 24, 2022, to December 31, 2023, and quantifies the direct physical damage to buildings and other infrastructure, the impact on people’s lives and livelihoods, and the costs of “better recovery”, noted the World Bank.
That 10-year spending estimate is up from $411 billion last March, with housing needs topping the list at $80 billion, or 17 percent, followed by transportation needs at $74 billion, or 15 percent, and trade and industry at 67. $5 billion or 14%.
“$486 billion is an immeasurably large amount and of course it reflects the real needs,” said Arup Banerjee, the World Bank’s regional director for Eastern Europe, although he noted that the high rate of damage seen in the early months of the war has slowed sharply.
The report said direct damage from the war reached almost $152 billion, with losses concentrated in regions such as Donetsk, Kharkiv, Luhansk, Zaporozhye, Kherson and Kyiv. Disruptions to economic production and trade, as well as other war-related costs such as debris removal, are likely to add another $499 billion, it said.
The new assessment excludes reconstruction needs that are already met by Ukraine’s state budget or through partners and international support.
The losses it describes are staggering, with about 2 million housing units – about 10% of Ukraine’s total housing stock – damaged or destroyed, as well as 8,400 km of roads, highways and others, and nearly 300 bridges.
The report says Ukraine needs about $15 billion to cover the most urgent priorities for repair, recovery and reconstruction in 2024, of which about $5.5 billion has already been covered through the state budget and support from the donors.
2024-02-15 18:19:21
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