Rebuilding and modernizing Ukraine will take $1 trillion, PM says
Photo: Prime Minister of Ukraine Denys Shmyhal (Vitalii Nosach, RBC-Ukraine)
Ukraine's concept envisages the creation of two funds to rebuild and modernize the country within 14 years. The total amount will be $1 trillion, says Prime Minister Denys Shmyhal at a meeting of the Ukraine Donor Platform within the framework of URC-2025.
- The first is the Ukraine Fund for $540 billion, the amount the World Bank estimates to rebuild Ukraine. This fund will be formed from confiscated Russian assets and a special tax on the export of Russian raw materials.
- The second fund is a $460 billion European structural fund to support Ukraine. It will be a platform for European private sector investment in Ukrainian production.
Shmyhal said that Ukraine has sufficient resources to cover the state budget deficit in 2025.
"We discussed attracting financial support for 2026 and 2027. We are preparing for different scenarios," he wrote.
Ukraine offers its European partners to invest in European defense by co-financing the Ukrainian army. Military expenditures currently amount to $100-120 billion.
"In peace and without taking into account the production of weapons, the maintenance of the Ukrainian army will cost 50 billion euros a year. We expect that half of this amount will be provided by the EU," he added.
Ukraine's needs
Earlier, Ukrainian Prime Minister Denys Shmyhal said that Ukraine's external financing needs for 2026 would remain at more than $40 billion.
In February, the World Bank, the European Commission, and the United Nations increased their estimates of the total cost of reconstruction and recovery of Ukraine to $524 billion over the next decade.
