Ukraine will need at least $190 billion for postwar reconstruction – Kyiv School of Economics Institute

DANA HORDIICHUK – WEDNESDAY, 10 AUGUST 2022, 21:39

The minimum amount needed for the restoration of the destroyed assets of Ukraine is a total of $188 billion, with direct losses reaching $110.4 billion.

This is stated in an updated assessment of losses to the Ukrainian economy by the Kyiv School of Economics (KSE) Institute project "Russia will pay", which is supported by the government and the Office of the President.

Over the past week, the vakue of direct infrastructure damage has increased by $2.1 billion, reaching $110.4 billion as of 8 August.

The biggest change has been in the assessment of infrastructure damage, which has reached $33.4 billion. According to the latest data, 304 bridges and overpasses worth $1.8 billion were damaged or destroyed as a result of the hostilities.

Overall, since the beginning of Russia's invasion of Ukraine, at least 15,300 apartment buildings, 115,900 private houses, 388 enterprises, as well as hundreds of kindergartens, medical facilities, and cultural buildings have been damaged, destroyed, or captured.

Indirect losses to industry have increased to $129.1 billion (+$300 million). Industry and enterprises have sustained the largest share of indirect losses — $29.8 billion. The agro-industrial complex and land resources ($23.4 billion) are in second place. Indirect infrastructure losses amount to $18.2 billion.

The minimum recovery needs have increased by $3 billion over the past week to $188 billion. The increase in the amount is connected with an increase in the number of destroyed and damaged objects that require reconstruction. Thus, at least $44.6 billion are needed for the restoration of infrastructure facilities, and $2.3 billion for cultural, tourist and sports facilities.

The total amount of recovery needs takes into account only the reconstruction of destroyed facilities, not the general needs for economic recovery or additional needs for the modernisation of assets that have not suffered damage. According to government estimates, if these categories are inculded, the total need is $750 billion.

Background: 

As of 1 August, the monetary value of direct losses to the Ukrainian economy from damage and destruction of residential and non-residential buildings and infrastructure has increased to $108.3 billion or 2.9 trillion hryvnias.

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