World Bank: Cost of rebuilding Ukraine has already reached at least US$349 billion

New York, United States of America (USA)- The World Bank, the European Commission and the Ukrainian government have said the cost of rebuilding Ukraine and its economy has already reached at least US$349 billion.

According to the report released on Friday dubbed the Rapid Damage and Needs Assessment (RDNA), the final cost may yet increase as the conflict drags on.

The report only covers the period up to June 1, meaning damage that has occurred in the past three months is not accounted for. It estimates that the cost of direct damage is US$97 billion, with housing, transport, commerce and industry most affected.

“It is a staggering number. We have to recognize that this war is having a devastating impact on Ukraine. What’s very important is that Ukraine continues to receive support from the international community to cover its day-to-day operating costs.

I think what we can get back to countries who want to help Ukraine is that sense of methodology, and analytics of how to prioritize when resources of course are not abundant, but they are there and that the needs are large.

It becomes much more expensive to recover and reconstruct if you let institution services erode during the war. Supporting the country during the war prevents the further deterioration of livelihoods and poverty impacts,” said Anna Bjerde, World Bank vice-president for Europe and Central Asia who was speaking to DW.

In addition, European Commission president, Ursula von der Leyen, noted that the European Union (EU) has already mobilized US$10 billion in financing, humanitarian, emergency, and military assistance for Ukraine and that another US$5 billion in financing is in the pipeline.

“The EU will walk every step of the way with Ukraine to rebuild a democratic, independent and prosperous country on its path to the EU,” said von der Leyen in a statement.

The report suggests that Ukraine needs US$349 billion for recovery and reconstruction across the social, productive, and infrastructure sectors, noting that the sum is more than 1.5 times the 2021 GDP of Ukraine. It also states that the RDNA’s assessments of damages and needs should be considered minimums.

Furthermore, the RDNA suggests that Ukraine will require at least US$105 billion over the next 36 months to address urgent needs such as restoring the education and health systems and infrastructure, as well as preparing for the upcoming winter by restoring heating and energy to homes, and supporting agriculture and repairing vital transportation routes.