Damage caused to Ukraine’s infrastructure during the war increased to $113.5 bln, minimum recovery needs for destroyed assets is almost $200 bln

As of August 22, 2022, the total amount of damage to Ukraine’s economy from the damage and destruction of residential and non-residential buildings and infrastructure (in monetary terms) increased to $113.5 bln. Compared to the calculations of August 8, the total amount increased by $3.1 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. 

The largest share in the total amount of damages belongs to the housing fund. As a result of hostilities, 131.3 thousand residential buildings were destroyed or damaged for $47.8 bln. 

In second place in the total amount are infrastructure damages, which continue to grow and as of August 22 reached $35.1 billion. According to the latest data, 311 bridges, 24.8 thousand km of communal roads, and state and local roads were damaged or destroyed as a result of hostilities. At the same time, according to the Ministry of Infrastructure, traffic has already been restored through 49 artificial structures on state highways, of which 20 — in the Kyiv region and 17 — in the Chernihiv region. 

According to the expert assessments, the damages caused to enterprises and industry increased to $9.5 bln, the education sector — to $3.9 billion, and transport — to $3 billion. The increase in these amounts is due to the increase in the number of damaged and destroyed objects. Also, we updated the methodology of calculation of small business damages (now we use oblasts instead of the largest cities), private enterreneurs we added. According to updated estimates, as a result of the war, Ukrainians lost over 188 thousand private cars, the total amount of such damage is $1.7 bln. These calculations do not take into account the number and value of cars not registered in Ukraine, so the actual amount of such damage may be higher.

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, 798 kindergartens, 43.7 thousand agricultural machinery, 1991 shops, 715 cultural facilities, 934 healthcare facilities, 119 social services facilities, 593 pharmacies, 17 administrative service centres have been damaged, destroyed or seized.

As of August 22, the losses of industries have not changed and amount to $129.7 billion. 

Compared to the last calculations, the minimum recovery needs for destroyed assets have increased by $9 billion, the total amount is already approaching $200 billion. The increase in the amount of needs is associated with the growth in the number of destroyed and damaged infrastructure facilities, industrial enterprises, and the spheres of culture, tourism and sports, which require reconstruction. 

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.