Russian Aggression Caused $27.8 Billion in Damage to Kharkiv Oblast

Denys Glushko - 03 March 2024 | 15:48

Russia’s full-scale invasion of Ukraine has caused more than $153 billion in damage to Ukraine, including at least $27.8 billion to the infrastructure of Kharkiv Oblast, the World Bank reported.

Donetsk ($38.7 billion in losses) and Kharkiv and Luhansk ($17.8 billion) are among the most affected regions.

“For almost two years of war, as of December 31, 2023, direct losses have reached almost $152 billion, with housing and utilities, transport, trade and industry, agriculture and energy sectors being the most affected. Damage is still concentrated in Donetsk, Kharkiv, Luhansk, Zaporizhzhia, Kherson and Kyiv regions,” the World Bank study concludes.

The disruption of economic flows and production and additional costs associated with the war (for example, to clear the rubble) are estimated to total more than $499 billion in economic losses.

As of December 31, 2023, recovery and reconstruction needs are estimated at nearly $486 billion over an (ambitious) 10-year period. These needs include critical steps for short-term recovery, as well as medium-term reconstruction that better meets modern, low-carbon and climate-resilient standards, and which – where appropriate and possible – excludes needs already being met by the Ukrainian state budget or through partners and international support.

The report also stresses that, according to the Ukrainian authorities, the country currently faces a $9.5 billion funding gap to address the priority recovery and reconstruction needs.

Ukraine’s line ministries have identified $15 billion worth of priorities for 2024, with a special focus on industry and services (almost $3.6 billion), housing and utilities ($3.1 billion), energy ($2.7 billion), social infrastructure and services ($2.4 billion), transport ($2.3 billion), and $1.2 billion needed to address cross-cutting priorities.

Although implementing these priorities will require more than $8 billion in investments from the state and state-owned companies and almost $7 billion in other public expenditures, the state budget and donor support has covered a significant share of the financial needs.

These public expenditures could leverage up to $5.5 billion in private investment, underscoring the critical importance of the private sector in supporting recovery and reconstruction.

Gwara’s choice

Environment ministry: Russia caused $69.3 Billion worth of damage to Ukraine’s environment. In total, there are more than 3,800 cases of environmental damage in Ukraine. Experts recorded each of these cases, but the damage continues to grow.

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