'$588 billion needed to rebuild Ukraine': World Bank, others release report on eve of fourth anniversary of war

Ukraine would need an estimated $588 billion to rebuild from the devastation caused by the conflict with Russia, according to a report released ahead of the war’s fourth anniversary.The joint study, released on Monday on the eve of the anniversary, said the amount is nearly three times Ukraine’s annual economic output and 12% higher than the assistance Kyiv received from its allies last year. Ukraine’s Western allies have pledged hundreds of billions of dollars in aid since the conflict began in February 2022, but Kyiv has used most of the funds to support the war effort and keep its economy afloat.“The recovery and reconstruction needs continue to grow and are now estimated at US$587.7 billion over a 10-year horizon — equivalent to almost three times Ukraine’s 2025 GDP,” the report stated.The highest reconstruction costs were projected in the transport sector at $96 billion, followed by energy and housing at around $90 billion each. Clearing debris and managing explosive hazards would require an estimated $28 billion.The frontline Donetsk and Kharkiv regions would need the largest share of investment, while the capital, Kyiv, would require more than $15 billion for recovery, the report showed.The study was prepared by the World Bank in collaboration with the Ukrainian government, the United Nations, and the European Commission. The estimate was based on damage assessed up to December 31, 2025.Since then, Russia has intensified its attacks on its neighbour's energy grid, launching waves of missile and drone strikes that have completely destroyed some power plants.Ukraine’s Western allies have allocated more than $400 billion in financial, military, and humanitarian assistance, according to data from the Kiel Institute.In January, the European Union announced plans for a 90 billion euro ($106 billion) loan package, most of which would cover Ukraine’s military expenses, with the remainder earmarked for general budget support.(With AFP inputs)