Ukraine’s comprehensive recovery will require at least $750 billion

Ukraine has developed a national recovery plan that runs until 2032. It was first presented in 2022 at an international conference in Lugano, Switzerland, followed by a discussion in London a year later, and this year in Berlin.

Over this period, the plan has undergone some transformation, but the key principles remain the same: recovery must begin now, without waiting for the end of the war, and the rebuilt Ukraine must become better, more modern, and meet EU standards.

The “Recovery Plan for Ukraine” is a large-scale and detailed document that reflects the main directions of restoring the country destroyed by the war. The plan consists of 15 national programs that meet the basic needs of our lives both during the war and post-war periods.

Each program contains a set of projects and supporting measures, including legislative changes. There are also two additional programs called “Fundamentals of Recovery”. These are Institutional Capacity Building and Digital State.

The amount of funding needed to implement each program has also been determined. The most expensive is “Restoration and Modernization of Housing and Regional Infrastructure.” It requires $150-250 billion.

The cheapest program is “Striving for EU Integration” – less than $1 billion.

Overall, according to preliminary estimates, Ukraine’s reconstruction will require $750 billion. This huge sum is not a complete assessment of the consequences of the destruction caused by the war. It is only an estimate of the implementation of specific projects included in national programs.

The following national programs have been developed as part of the Recovery Plan for Ukraine:

– Strengthening defense and security – $50 billion.

– Striving for integration with the EU – $1 billion.

– Restoring a clean and secure environment – $20 billion.

– Energy independence and green course – $130 billion.

– Improving the business environment – $5 billion.

– Ensuring competitive access to capital – $75 billion.

– Ensuring macro-financial stability – $60-80 billion.

– Development of value-added economic sectors – $50 billion.

– Expansion and integration of logistics with the EU – 120-160 billion dollars.

– Restoration and modernization of housing and regional infrastructure – $150-250 billion.

– Restoration and modernization of social infrastructure – $35 billion.

– Development of the education system – $5 billion.

– Modernization of the health care system – 5 billion dollars.

– Development of culture and sports systems – $20 billion.

– Ensuring effective social policy – $7 billion.

Although the amount of funding is rather conditional, as the war is not over yet and the enemy continues to destroy Ukraine, it is positive that a roadmap for recovery has been developed and presented now. This is important for both Ukrainians and partners who help with the reconstruction.

How will the projects be funded?

According to the Recovery Plan for Ukraine, more than $350 billion is needed to implement projects in the first phase. Funds for Ukraine’s recovery should come from several sources:

– assistance from partner countries, international financial organizations, and large international corporations;

– targeted assistance from partner countries to the affected regions;

– frozen, confiscated assets of the Russian Federation; contributions from individuals;

– assistance from international humanitarian organizations and charitable foundations.

Source: Anti-Crisis Media Center