The cost of rebuilding Ukraine following the war has surged to $524 billion, nearly three times the country’s projected economic output for 2024, according to a new assessment by the World Bank, United Nations, European Commission, and the Ukrainian government.

This latest estimate, which incorporates data up to December 31, 2026, marks a 7% increase from the $486 billion projected a year ago. The rise in costs is largely due to a 70% increase in damage to Ukraine’s energy infrastructure following continued Russian attacks. The most severely affected sectors include housing, transport, energy, commerce, and education.

Impact beyond infrastructure

Beyond assessing the physical destruction, the study also examines the broader impact on Ukrainian livelihoods, considering the cost of rebuilding not just to pre-war levels, but to create a more resilient and sustainable economy.

"In the past year, Ukraine’s recovery needs have continued to grow due to Russia’s ongoing attacks," Ukrainian Prime Minister Denys Shmyhal stated.

Ukraine’s government has set aside $7.37 billion for urgent needs in 2025, with support from international donors. However, there remains a funding gap of nearly $10 billion, according to the joint statement.

Direct war-related damages in Ukraine have climbed to $176 billion, up from $152 billion reported in February 2024. More than 13% of the country’s housing stock has been damaged or destroyed, affecting over 2.5 million households. Damage to the energy sector—including power generation, transmission, and district heating—has increased by 70% over the past year.

The long-term recovery estimates include:

• $84 billion for housing
• $78 billion for transport
• $68 billion for energy and mining
• $64 billion for commerce and industry
• $55 billion for agriculture
• $13 billion for debris clearance and management

Despite the immense financial burden, Ukraine has reportedly made strides in its recovery and reconstruction efforts. Antonella Bassani, the World Bank’s vice president for Europe and Central Asia, emphasized that the assessment highlights Ukraine’s progress in physical and economic recovery, reforms, and reconstruction needs.

The report also excluded over $13 billion in needs that have already been covered through state funds, international partners, and private sector contributions. This includes $1.2 billion allocated for housing needs and over 2,000 km (1,243 miles) of emergency road repairs.

Read next: Russia seeks long-term Ukraine peace, rejects hasty ceasefire