As the Russia-Ukraine war enters its fourth anniversary on February 24th, the World Bank, the Ukrainian government, the United Nations, and the European Commission have released a joint report indicating that Ukraine will need an estimated $558 billion (2.17 trillion ringgit) over the next decade to recover and rebuild from the widespread devastation caused by Russia’s invasion—almost three times Ukraine’s projected 2025 gross domestic product (GDP). The report also notes that this latest estimate is about 12% higher than last year’s.
Energy, Transport, and Housing Are the Top Three Money Pits for Reconstruction
The report points out that Russian attacks have severely damaged Ukraine’s economy and basic livelihood infrastructure, with many towns badly affected and millions of people displaced. Of all sectors, the transportation sector faces the highest reconstruction costs, at about $96 billion (373.54 billion ringgit), followed by energy and housing, each at about $90 billion (350.19 billion ringgit). Additionally, due to the large number of unexploded ordnance and landmines in conflict zones, debris removal and "explosive hazard management" (including de-mining) is estimated to cost $28 billion (108.95 billion ringgit). The report mentions that more than one-seventh of residences in Ukraine have been damaged or destroyed in the war.
The joint report clarifies that the estimates are based on damage assessments as of December 31, 2025; even after that date, Russian attacks on Ukraine’s power grid have continued to intensify, including massive missile and drone strikes that have even completely destroyed some power generation facilities, putting additional pressure on repairs and power supply stability. AFP noted that last winter, Russia launched devastating assaults on Ukraine’s energy infrastructure, causing millions to lose power.
Over $15 Billion Needed to Rebuild the Capital Kyiv
By region, the report states that the front-line areas of Donetsk and Kharkiv require the most reconstruction funding; while the capital Kyiv’s estimated reconstruction needs exceed $15 billion (58.365 billion ringgit).
On the other hand, although Western allies have provided massive support since Russia’s full-scale invasion in February 2022, data from the Kiel Institute for the World Economy in Germany shows that financial, military, and humanitarian aid combined totals more than $400 billion (1.55 trillion ringgit). However, Kyiv has allocated most of these funds to war spending and maintaining the economy’s basic operations. The EU also said in January this year that it plans to provide about $106 billion (412.45 billion ringgit) in loans, mainly to support Ukraine’s military expenses, with the remainder being used for the general budget.