KYIV, Ukraine – The estimated cost of rebuilding Ukraine’s war-ravaged economy has surged to $524 billion (Ksh.67.8 trillion), nearly three times the country’s projected economic output for 2024, according to a new assessment by the World Bank, United Nations, European Commission, and the Ukrainian government.
The latest estimate, which incorporates data through the end of December, reflects a more than 7% increase from last year’s projection of $486 billion (Ksh.62.9 trillion).
The sharp rise is attributed to sustained Russian attacks, particularly on Ukraine’s energy infrastructure, which has suffered a 70% increase in damages.
Ukraine’s reconstruction needs have continued to grow, with key sectors such as housing, transport, energy, commerce, and education bearing the brunt of the devastation.
According to the report, direct damage from Russian attacks now stands at $176 billion—up from $152 billion recorded in early 2024.
Among the most severely affected areas is the housing sector, which requires an estimated $84 billion for long-term recovery.
About 13% of Ukraine’s housing stock has been damaged or destroyed, affecting more than 2.5 million households.
The transport sector follows closely behind, with a reconstruction cost of nearly $78 billion, while the energy and mining industries need about $68 billion.
The destruction of Ukraine’s energy sector has been particularly severe, with attacks targeting power generation, transmission, and distribution infrastructure, as well as district heating systems.
The cost of clearing debris alone has been pegged at nearly $13 billion.
Despite the enormous financial burden, Ukraine’s government has allocated $7.37 billion toward urgent recovery needs in 2025, with support from international donors.
However, the country still faces a financing gap of nearly $10 billion, highlighting the continued reliance on foreign aid and investment to sustain its recovery efforts.
Antonella Bassani, vice president for Europe and Central Asia at the World Bank, noted that while Ukraine has made progress in physical and economic recovery, much work remains.
The report also acknowledged over $13 billion in recovery efforts already covered through partnerships with donors and the private sector, including $1.2 billion spent on housing repairs and the emergency restoration of more than 2,000 kilometers of roads.
Meanwhile, U.S. President Donald Trump has signaled an effort to broker an end to the war, telling reporters during a meeting with French President Emmanuel Macron that a peace deal between Russia and Ukraine could be reached “within weeks.”
However, with the war in its third year and reconstruction costs climbing, Ukraine’s Prime Minister Denys Shmyhal stressed that Russian attacks continue to drive up the country’s recovery needs.
“In the past year, Ukraine’s recovery needs have continued to grow due to Russia’s ongoing attacks,” he said.
