Due to the last estimates, damage caused to Ukraine’s infrastructure during the war is $114.5 bln

8 September 2022

As of September 5, 2022, the total amount of damage to Ukraine’s infrastructure is $114.5 billion. Compared to the last estimates, damage caused by destruction and damage to residential and non-residential buildings and infrastructure has increased by $1 billion. 

The assessment is the result of joint work of the KSE Institute, the government authorities under the leadership of the Ministry of Reintegration of Temporarily Occupied Territories, the Ministry for Communities and Territories Development and the Ministry of Infrastructure in cooperation with other ministries and partner organizations under the umbrella of The National Council for the Recovery of Ukraine from the Consequences of the War. 

According to experts’ evaluation, the increment in the total amount of damages is related to the growth in the number of destroyed and damaged objects among industrial enterprises, social institutions, culture, tourism, and sports facilities.

According to the latest data, since the beginning of the war, 412 industrial enterprises have been damaged and destroyed, including large and medium-sized facilities in the eastern and southern regions of Ukraine. The amount of damages caused to enterprises and industry is $9.7 billion. 

The number of destroyed or damaged facilities providing social services also continues to grow. There are already 141 of them. At the same time, in the current evaluation, the amount of damage and recovery needs of these objects was adjusted downward due to clarification of the total area of ​​damaged and affected buildings. 

 

According to updated information from the Ministry of Regional Development, regarding the area of destroyed and damaged cultural, tourism, and sports facilities, there have been changes in the damage assessment of these facilities. Thus, as of September 5, 1,153 cultural, sports, and tourist facilities were damaged or destroyed due to hostilities, amounting to $2 billion. By the number of destroyed and damaged cultural, sports, and tourism institutions were most affected in Kyiv, Donetsk, Luhansk, Kharkiv, Mykolaiv, and Zaporizhia regions.

The largest shares of the total amount of damages belong to the housing fund and infrastructure — 72%. In total, the damages of these two spheres are estimated by project experts at $82.9 billion. 

Since the beginning of Russia’s war against Ukraine, at least 15.3 thousand apartments, 115.9 thousand private houses, 1991 shops, 44 social centers, 1118 education institutions, 593 pharmacies, 188.1 thousand private cars, 9.5 thousand buses, 492 trams and trolleybuses, 978 healthcare facilities, 511 administrative facilities have been damaged, destroyed or seized.

As of September 5, 2022, the total amount of losses increased by $700 million and amounted to $130.4 billion. The largest share of losses caused to the industry and Ukrainian enterprises — $30.3 billion.

Compared to the last calculations, the minimum needs for the restoration of industries have increased by $800 million and already reach $197.8 billion. The largest needs for restoration are necessary for the housing stock — $75.3 billion, infrastructure — $51.1 billion, and enterprises and industry — $19.7 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.