The European Commission announced on Thursday that the cost of reconstructing Ukraine is estimated to be around 452.8 billion euros. According to a joint damage and needs assessment released by the Ukrainian government, the World Bank Group, the European Commission, and the United Nations, the total cost for reconstruction and recovery in Ukraine over the next decade is approximately 486 billion dollars (452.8 billion euros), an increase from last year’s estimate of about 411 billion dollars (383 billion euros).
Earlier, the Belgian Presidency of the Council of the European Union announced that EU representatives agreed to a proposal by the European Commission to use the proceeds from frozen Russian assets for Ukraine’s reconstruction. The Belgian Presidency stated on the “X” platform that “EU Ambassadors have just tentatively agreed to a proposal to use the proceeds from frozen Russian assets to support the reconstruction of Ukraine.”
However, Fabio Panetta, the Governor of the Italian Central Bank, warned of severe consequences for the EU’s efforts to confiscate Russian assets, stating that using currency as a weapon could reduce its attractiveness and encourage the emergence of alternatives. Bloomberg also reported that seizing frozen Russian assets would not help Ukraine but might complicate the situation in Kyiv.
The destruction caused in Ukraine due to Russia’s invasion has been extensive and has led to significant humanitarian, infrastructural, and economic impacts. A report by the World Bank, the Ukrainian government, and the European Commission highlighted that as of June 1, direct damages exceeded $97 billion, with reconstruction needs estimated at around $349 billion, approximately 1.6 times Ukraine’s GDP in 2021. The destruction has been particularly severe in the eastern regions of Donetsk, Luhansk, Kharkiv, and Zaporizhzhia, where the frontline was sustained for months. Towns like Irpin near Kyiv have seen nearly half of their buildings damaged or destroyed, with infrastructure losses in Irpin alone estimated at $921.7 million.
The conflict has also seen a rise in cyberattacks against Ukraine, with significant incidents occurring even before the full-scale invasion in 2022. Attacks on power infrastructure and government and business computer systems have caused widespread disruptions. The humanitarian crisis has deepened, with over thirteen million people displaced, making it one of the most significant displacement crises in recent history. Civilian casualties have been high, with confirmed figures likely underestimating the actual toll. The war has also taken a considerable toll on Ukraine’s infrastructure, with many left without basic services like electricity, clean water, and healthcare.
The conflict has led to calls for international action, with the UN underscoring the need to stop the cycle of death, destruction, dislocation, and disruption. The UN and other international bodies have emphasized the importance of establishing accountability for crimes and atrocities committed during the conflict to ensure justice and prevent future violations.
