"Ukraine Reconstruction Costs Expected to Reach 484 Trillion Won"

On the 9th, Joint Report Released by World Bank, Ukrainian Government, and European Commission
Ukrainian Prime Minister Shmyhal: "First Report Presenting War Damage Assessment"

Buildings in Ukraine completely destroyed by Russian attacks.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The estimated cost of post-war reconstruction in Ukraine is projected to reach $349 billion (approximately 483 trillion KRW).

The World Bank (WB), the Ukrainian government, and the European Union (EU) Commission jointly released this assessment report on their websites on the 9th.

According to the report, the physical damage in Ukraine from Russia's invasion on February 24 until June 1 is estimated at $97 billion (approximately 134 trillion KRW). Notably, the housing, transportation, commercial, and industrial sectors suffered significant damage.

The economic losses during the same period amounted to $252 billion (approximately 349 trillion KRW).

Furthermore, due to the war, one-third of Ukrainians have been displaced, and the poverty rate in Ukraine, which was barely 2% before the war, is expected to rise to 21%.

The combined total of physical damage and economic losses, $349 billion, exceeds 1.7 times Ukraine's GDP of $200 billion (approximately 277 trillion KRW) last year.

As the war prolongs beyond expectations, Ukraine faces urgent recovery needs such as repairing schools, housing, and heating systems in preparation for the upcoming winter, with estimated recovery costs of $105 billion (approximately 145 trillion KRW).

The WB and others stated, "If the war continues, recovery and reconstruction costs may increase further," adding, "The invasion will affect multiple generations."

Specifically, this includes losing one's hometown, families being separated, hindering human development, destroying unique cultural heritage, and reversing positive economic progress.

Ursula von der Leyen, President of the EU Commission, said, "Ukraine is fighting for democracy and our shared values. The EU is mobilizing all means to address the most urgent needs, including housing for displaced persons and repairs to critical infrastructure," and expressed determination, "We will take every step with Ukraine to rebuild a democratic, independent, and prosperous nation."

Meanwhile, Ukrainian Prime Minister Denys Shmyhal evaluated via Telegram, "This report is the first comprehensive damage assessment of the war's impact on Ukraine and lays the foundation for funding recovery plans," emphasizing, "Reconstruction requires joint resource mobilization from the Ukrainian government and international partners."