Kyiv: The World Bank updated its cost estimate for Ukraine's reconstruction Monday, raising it to $588 billion as of the end of last year from $524 billion in its previous report. It stated that the updated cost for the next 10 years is nearly three times the gross domestic product (GDP) of Ukraine in 2025, as four years have passed since the start of the war with Russia.

According to Anadolu Agency, the World Bank mentioned in a statement that with the support of development partners, the Government of Ukraine is taking significant steps to meet recovery and reconstruction priorities for 2026. These efforts include public investment projects and essential recovery support programs such as funding for destroyed housing, demining, and multisector economic support programs, totaling more than $15 billion. The bank also noted that at least $20 billion in needs have already been met since February 2022 through emergency repairs and early recovery activities carried out in housing, energy, education, transportation, and other essential sectors.

The bank further highlighted that direct damage in Ukraine has now reached over $195 billion, up from $176 billion in the previous report, with housing, transport, and energy sectors being the most affected. "Damage, losses, and needs remain concentrated in frontline oblasts and major metropolitan areas," it noted. In the energy sector, there has been an approximately 21% increase in damaged or destroyed assets since last year's report, while in the transportation sector, needs have risen by approximately 24% compared to last year.

The report also indicated that as of the end of last year, 14% of the housing stock was damaged or destroyed, affecting more than 3 million households. Reconstruction and recovery needs are highest in the transport sector, exceeding $96 billion. This is followed by the energy sector at nearly $91 billion and the housing sector at almost $90 billion. Additionally, the commerce and industry sector requires more than $63 billion, while agriculture accounts for over $55 billion.

Meanwhile, explosives hazard management and debris clearance are estimated to cost nearly $28 billion, despite progress in surveying and demining efforts that have helped limit losses in this area.