Projected cost to rebuild Ukraine surges to $524 billion: World Bank.

The projected cost to rebuild Ukraine’s economy after Russia’s invasion has surged to $524 billion, almost three times the nation’s anticipated 2024 economic output, according to findings by the World Bank, United Nations, European Commission and the Ukrainian government.

A new study by the institutions included data from Russia’s invasion three years ago through Dec. 31, including a 70% increase in damages to Ukraine’s energy infrastructure from Russian attacks.

It showed an increase of over 7% from the last estimate of $486 billion one year ago, with housing, transport, energy, commerce and education being the most affected sectors.

The study quantifies the direct physical damage to buildings and other infrastructure, the impact on people’s lives and livelihoods and the cost to “build back better,” the institutions said in a joint news release.

U.S. President Donald Trump is pushing to end the war through separate talks with Russia and Ukraine, telling reporters during a meeting with French President Emmanuel Macron that a deal could be reached in weeks.

“In the past year, Ukraine’s recovery needs have continued to grow due to Russia’s ongoing attacks,” Ukraine’s Prime Minister Denys Shmyhal said in a statement.

“The fourth phase of the Rapid Damage and Needs Assessment remains vital to our recovery strategy … This year, the government continues the rapid recovery program, focusing mainly on repairing and developing energy infrastructure and rebuilding housing for Ukrainian families,” Shmyhal noted.

Ukraine’s government has allocated $7.37 billion to address priority needs for 2025, with support from donors, but still has a financing gap of nearly $10 billion. The latest assessment, using a universal methodology to assess damages and needs, found that direct damage in Ukraine from Russian attacks has risen to $176 billion from $152 billion reported in February 2024.

Source: DAILYSABAH