Direct damage caused to Ukraine’s infrastructure during the war has reached over $110.4 bln, minimum recovery needs for destroyed assets — $188 bln

10 August 2022

Over the past week the amount of damage to Ukraine’s economy from the damage and destruction of residential and non-residential buildings and infrastructure (in monetary terms) increased by over $2.1 bln and as of August 8 has reached $110.4 bln.

This can be seen from the analysis carried out within the “Russia will pay” project by the KSE Institute team (the analytical unit of Kyiv School of Economics) with the support of  the Presidential Office, the Ministry of Economy, the Ministry of Reintegration of Temporarily Occupied Territories, the Ministry of Infrastructure and the Ministry for Communities and Territories Development.

According to new estimates, the biggest change occurred in the assessment of infrastructure damages, which already reach $33.4 billion. The project team received detailed information from the Ministry of Infrastructure on damaged and destroyed bridges, which allowed to calculate these damages and continue to improve the methodology. According to the latest data, 304 bridges and bridge crossings worth $1.8 billion were damaged or destroyed as a result of hostilities.

Works on the restoration of the automobile infrastructure of Ukraine are in progress. According to the information of the Ministry of Infrastructure, traffic through 49 artificial structures on highways of state importance has already been restored, the largest number of facilities has been restored in Kyiv (20) and Chernihiv regions (17).

Also, in the current week, damages in the spheres of culture, tourism and sports amounted to $1.3 billion. The increase of this amount by $400 million is associated with the growth in the number of damaged and destroyed objects and the receipt of updated data from the Ministry for Communities and Territories Development.

Since the beginning of Russia’s war against Ukraine, at least 15.3 thousand apartments, 115.9 thousand private houses, 388 enterprises, 18 civilian airports, 764 kindergartens, 43.7 thousand agricultural machinery, 1991 shops, 27 shopping centers, 511 administrative buildings, 28 oil depots, 106,140 private cars, 634 cultural facilities, 764 kindergartens, 934 healthcare facilities, 119 social services facilities have been damaged, destroyed or seized.

As of August 8, the amount of losses increased to $129.1 billion. In comparison with the last estimates, such amount increased by $300 million. The largest share of losses caused to industry and Ukrainian enterprises — $29.8 billion. In second place in terms of the amount of losses — agro-industrial complex and land resources, for $23.4 billion. Another $18.2 billion — infrastructure losses.

According to experts of the “Russia will pay” project, the minimum recovery needs for destroyed assets increased by $3 billion over the last week and today amount to $188 billion. The increase in the amount of needs is associated with the growth in the number of destroyed and damaged infrastructure facilities and the spheres of culture, tourism and sports, which require reconstruction. At least $44.6 billion is needed to restore destroyed and damaged infrastructure facilities. And the recovery needs for cultural, tourist and sports facilities have increased by $700 million and amount to $2.3 billion.

The total amount of recovery needs takes into account only the reconstruction of destroyed objects according to the Build Back Better principle, taking into account modernization, and the additional need for liquidity for the restoration of enterprises. At the same time, this assessment does not take into account the general needs for the recovery of the economy, as well as additional needs for the modernization of assets that have not suffered damage and destruction. According to the Government’s estimates, taking into account these categories, the total need for financing the recovery and modernization of the economy is $750 billion.

The project team also includes volunteers from the Center for Economic Strategy, Dragon Capital, the Anti-Corruption Headquarters, Institute of Analysis and Advocacy, Transparency International Ukraine, Prozorro.Sale, Prozorro, Ukrainian Council of Shopping Centers, CoST Ukraine, Vkursi Agro, TVIS Ukraine, Retail Association of Ukraine, Culver Aviation, Center for Innovations Development. 

This assessment became possible due to the support of the American People through the United States Agency for International Development (USAID) under the Competitive Economy Program in Ukraine. The estimate and its result do not necessarily reflect the views of the United States Agency for International Development or the United States Government.