Ukraine’s reconstruction costs surge in new assessments

Why the amount has increased

The primary reason for the surge in estimates is the escalation of Russian attacks on critical infrastructure.

Over the past year, the volume of damaged energy infrastructure has increased by 21%.

The report’s authors note that the updated figure covers damages through the end of 2025, but does not yet account for the consequences of the massive strikes in January and February 2026, which caused prolonged power and heating outages.

Key damage figures

Direct damage to infrastructure currently reaches $195 billion. The largest losses have been recorded in the following sectors:

• Housing: $61 billion (14% of the total housing stock damaged or destroyed)

• Transport: $40.3 billion

• Energy: around $25 billion

Total socio-economic losses due to business stoppages and unemployment are estimated at $667 billion.

Economic and social consequences

Due to the war, Ukraine’s real GDP has declined by 21% compared to pre-war 2021. The demographic situation remains critical: more than 6 million Ukrainians are abroad, and the number of children in the country has decreased by 2.4 million.

As Prime Minister Yulia Svyrydenko noted, the cost of reconstruction already nearly triples the country’s projected GDP for 2025.

Experts estimate that Ukraine could cover up to 40% of these needs through private investment, provided it implements reforms to stimulate the industrial and agricultural sectors.

2025 estimates

For reference, on February 24, 2025, then-Prime Minister Denys Shmyhal stated that, according to the latest estimates, the cost of rebuilding the country would be around €500 billion.

He emphasized that this process should become a major effort for all of Europe.