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 joint statement said.
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.
About 13% of Ukraine's total housing stock has been damaged or destroyed, affecting more than 2.5 million households.
It cited a 70% increase in damaged or destroyed assets in the energy sector since the last assessment one year ago, including power generation, transmission, distribution infrastructure and district heating.
"The assessment highlights the extraordinary damage Russia has inflicted on Ukraine," said EU Commissioner for Enlargement Marta Kos.
"The EU is already supporting Ukraine’s reconstruction and recovery by mobilizing more private investments through the Ukraine Investment Framework, and by helping the country integrate deeper into the EU single market. This will be a pillar of Ukraine’s recovery and create new opportunities for both Ukrainian and European businesses," Kos added.
The housing sector accounted for about $84 billion of the total long-term needs, followed by transport with almost $78 billion, energy and mining with almost $68 billion, commerce and industry with over $64 billion, and agriculture with over $55 billion.
The cost of debris clearance and management alone was pegged at almost $13 billion, the report said.
Antonella Bassani, the World Bank's vice president for Europe and Central Asia, said the assessment showed the progress Ukraine has already made on physical and economic recovery, reforms and reconstruction needs.
It excluded over $13 billion in needs across eight sectors that have already been met by Ukraine with the support of its partners and the private sector. That includes some $1.2 billion disbursed from the state budget and donor funds for housing needs and over 2,000 kilometers (1,243 miles) of emergency road repairs.
"The true cost of war is measured in human lives and livelihoods," said Matthias Schmale, the U.N. resident and humanitarian coordinator in Ukraine.
"Beyond immediate aid, we must contribute to opening up opportunities at scale for the people of Ukraine to rebuild their lives with dignity. This means investing in dignified jobs, education, health care and prioritizing the inclusion of vulnerable groups among women and girls, children, displaced people, Roma communities, war veterans and persons with disabilities," Schmale noted.
"The path forward requires strengthening partnerships, de-risking investments and a steadfast commitment from all of us not just with help structures but support restoring the social fabric of war-impacted communities."
