The expense of restoring the economy of Ukraine after Russia invaded it has risen to $524 billion, close to three times Ukraine’s estimated economic output for 2024, a collective assessment by the World Bank, United Nations, European Commission, and the Ukrainian government said.
The new research, which spans data from the beginning of the invasion to December 31, emphasizes a 70% increase in damages to Ukraine’s energy infrastructure as a result of ongoing Russian attacks. The new estimate is a greater than 7% rise from last year’s reported $486 billion. Housing, transport, energy, commerce, and education continue to be the most impacted sectors.
The evaluation considers direct physical destruction of buildings and infrastructure, as well as the wider economic and social effect. The report is released as US President Donald Trump insists on individual talks with Russia and Ukraine, stating a deal could be achieved in weeks.
“Over the last year, Ukraine’s recovery needs have continued to increase as a result of Russia’s continued aggression,” Ukrainian Prime Minister Denys Shmyhal said.
Ukraine has committed $7.37 billion to short-term recovery needs in 2025 with support from international donors but still needs an almost $10 billion financing gap. Direct damages from Russian assaults are now estimated at $176 billion, compared to $152 billion in early 2024, according to the report.
Destruction of Ukraine’s residential sector constitutes around $84 billion in the long-term costs of recovery, transportation needs close to $78 billion, energy and mining over $68 billion. Commerce and industry losses amount to more than $64 billion, and losses in agriculture exceed $55 billion.
Debris removal and management alone is estimated at close to $13 billion. Yet the study omits $13 billion in recovery requirements already paid for by Ukraine and its friends, such as $1.2 billion set aside for housing and more than 2,000 km of emergency road work.