World Bank says reconstruction to cost $588 billions over next decade – Firstpost

Four years into Russia’s full-scale invasion, the cost of rebuilding Ukraine has surged to an estimated $588 billion over the next decade, speaking volumes about the immense toll the war has taken on the country’s infrastructure, economy, and people.

The updated assessment was released jointly by the World Bank Group, the European Commission, the United Nations, and Ukraine’s government.

The figure is nearly three times Ukraine’s projected nominal GDP for 2025. The new estimate reflects nearly four years of destruction between February 2022 and December 2025.

Damage continues to mount

Direct damage across Ukraine has now exceeded $195 billion, up sharply from earlier estimates. Homes, transport systems, and energy infrastructure have been among the hardest hit, with millions of people affected. Around 14 percent of all housing has been damaged or destroyed, impacting more than three million households.

Ukraine’s energy sector has faced especially severe blows, with attacks intensifying over the past year. Damage to power generation, transmission lines, and heating systems has increased significantly, worsening risks to electricity and heating supplies. Transport networks, including railways and ports, have also suffered major destruction, further complicating economic recovery.

Massive rebuilding effort ahead

The largest reconstruction needs are concentrated in transport, energy, and housing, each requiring tens of billions of dollars in investment. Other key sectors include commerce, agriculture, and industrial infrastructure, all of which are vital for restoring economic stability and growth.

Despite the devastation, Ukraine has already begun rebuilding critical systems. More than $20 billion worth of urgent repairs and early recovery work has been completed since the invasion began. These efforts have focused on restoring housing, energy services, education facilities, and essential infrastructure.

Recovery tied to reforms and global support

Officials and international partners say Ukraine’s recovery will depend not just on funding, but also on reforms and private investment. Strengthening the business environment, improving governance, and aligning with European standards will be crucial to attracting long-term support.