The Russian invasion caused more than $97 billion in direct damage to Ukraine through June 1, but the country could cost nearly $350 billion to rebuild, according to a report released on Friday by the World Bank. , the Ukrainian government and the European Commission.
According to the report, Ukraine also suffered $252 billion worth of losses due to disruption of economic and production flows, as well as additional expenses stemming from the war, while the displacement of a third of Ukrainians is expected. to increase the poverty rate to 21%, from 2% before the war.
Overall, the report estimated that Ukraine’s reconstruction needs would reach $349 billion as of June 1, equivalent to 1.6 times the country’s Gross Domestic Product of $200 billion in 2021. .
Of that amount, 105,000 million dollars are needed in the short term to address urgent priorities, such as the reconstruction of thousands of damaged or destroyed schools and more than 500 hospitals. It is also essential to prepare for the upcoming and probably brutal boreal winter by repairing homes, restoring heating and buying gas.
All figures are preliminary and are likely to rise as the war continues, the report said.
“The impact of the invasion will be felt for generations, with families displaced and separated, disruptions to human development, destruction of intrinsic cultural heritage, and reversal of a positive economic and poverty trajectory,” he said.
Arup Banerji, the World Bank’s regional director for Eastern Europe, said the findings are based on “very strong” internationally accepted methodology, and should serve as the basis for a conference to be held by the Group of Seven in Berlin on October 25.
Oleg Ustenko, a top economic adviser to Ukrainian President Volodymyr Zelensky, said Ukraine needs donor countries to commit to continuing to provide $5 billion in funding every month for the next year.