The World Bank estimates that after three years of conflict, Ukraine will require $524 billion to recover and rebuild

The World Bank, United Nations, European Commission, and Ukrainian government have determined that the amount of money needed to reconstruct Ukraine’s economy following Russia’s invasion has increased to $524 billion, which is over three times its projected economic production in 2024.

According to a recent analysis by the institutions, the damage caused by Russian attacks to Ukraine’s energy infrastructure increased by 70% between December 31 and the start of Russia’s invasion three years ago.

With the most impacted sectors being housing, transportation, energy, commerce, and education, it revealed a rise of more than 7% over the previous estimate of $486 billion made a year ago.

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

When he met with French President Emmanuel Macron, U.S. President Donald Trump told reporters that a settlement could be reached in weeks and pushed for separate negotiations with Russia and Ukraine to end the war.

“Russia’s continuous attacks have caused Ukraine’s recovery needs to increase over the past year,” Ukraine’s prime minister, Denys Shmyhal, said in a statement.

According to the joint statement, Ukraine’s government has set aside $7.37 billion to fulfill urgent needs for 2025 with donor support, but there is still a nearly $10 billion funding deficit.

Using a uniform framework to evaluate needs and damages, the most recent evaluation revealed that direct damage in Ukraine from Russian strikes has increased from $152 billion in February 2024 to $176 billion.

Approximately 13% of Ukraine’s entire housing stock has been destroyed or severely damaged, impacting over 2.5 million households.

Since the last evaluation a year ago, it noted a 70% rise in damaged or destroyed energy sector assets, including district heating, transmission, power generating, and distribution equipment.

Of the total long-term demands, the housing sector was responsible for approximately $84 billion, followed by transportation (nearly $78 billion), energy and mining (nearly $68 billion), commerce and industry (over $64 billion), and agricultural (nearly $55 billion).

The research estimated that the cost of managing and clearing debris alone was close to $13 billion.

The assessment demonstrated Ukraine’s progress on economic and physical recovery, reforms, and reconstruction needs, according to Antonella Bassani, vice president for Europe and Central Asia at the World Bank.

With the help of its allies and the business sector, Ukraine has already addressed more than $13 billion in requirements in eight different areas. Approximately $1.2 billion was allocated from the state budget and donor funding to address housing requirements and more than 2,000 kilometers (1,243 miles) of urgent road maintenance.