Ukraine will need $588 billion for reconstruction over the next 10 years

As of the end of 2025, the total cost of reconstruction and recovery in Ukraine is estimated at nearly $588 billion over the next decade. This is according to the updated joint Rapid Damage and Needs Assessment (RDNA5) published by the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations.

It is noted that this amount is almost three times higher than Ukraine’s estimated nominal GDP for 2025.

The latest update provides an overview of nearly four years of the impact of the full-scale invasion, covering 46 months (February 2022 – December 2025). Direct damage in Ukraine has already reached over $195 billion, compared to $176 billion in RDNA4 from February 2025.

The housing, transport, and energy sectors have been hit the hardest. Damage, losses, and needs remain concentrated in frontline areas and megacities.

In particular, in the energy sector, which has been subject to increased attacks, there has been an approximately 21% increase in the number of damaged or destroyed facilities since RDNA4, including electricity generation, transmission, and distribution infrastructure, as well as centralized heat supply. In the transport sector, needs have increased by approximately 24% as a result of intensified attacks on railways and ports during 2025. As of December 31 last year, 14% of housing had been damaged or destroyed.

Of the total long-term needs, reconstruction and rehabilitation needs are highest in the transport sector (over $96 billion), energy (nearly $91 billion), housing (nearly $90 billion), trade and industry (over $63 billion), and agriculture (over $55 billion). An additional $28 billion is needed for demining and debris clearance.

Of the total long-term needs, reconstruction and rehabilitation needs are highest in the transport sector (over $96 billion), energy (almost $91 billion), housing (almost $90 billion), trade and industry (over $63 billion), and agriculture (over $55 billion). Another $28 billion is needed for demining and cleanup work.

As noted by Deputy Prime Minister for the Recovery of Ukraine – Minister of Community and Territorial Development Oleksiy Kuleba, the country has $5.8 billion in funding available for the implementation of priority projects and programs in 2026, but the deficit remains critical at $9.5 billion.

It should be recalled that Ukraine’s GDP in 2025 was 21% lower than its pre-war level. A number of important macroeconomic indicators are already showing negative dynamics. Industrial production in Ukraine fell by 2.4% year-on-year last year, while in 2024 there was a 3.6% year-on-year increase. Growth was observed in the defense, pharmaceutical, and metallurgical industries.