In terms of infrastructure restructuring financing, the most important changes took place in the front areas.
Ukraine will have to spend 411 billion dollars to save its own economy from the consequences of the war. This amount is 2.6 times the expected GDP of Ukraine in 2023, Reuters reported, basing it on World Bank data.
According to Rapid Needs Assessment, Ukraine needs $14 billion for critical and priority reconstruction and improvement investments in 2023. This will require $11 billion in funding, more than what was projected in Ukraine’s budget this year.
Approximately 22% of the needs are transportation, housing – 17%, energy – 11% and agriculture – 7%. The largest proportional growth took place in the energy sector. Here, damage was five times the June 2022 level, according to the World Bank.
Significant changes have occurred in terms of financing the rehabilitation of infrastructure in the front areas, for example:
- Donetsk region;
- Kharkov region;
- Lugansk region;
- Kherson district.
It is noted that since October 2022, these regions have been subjected to strong missile attacks from the Russian Federation.
At the same time, World Bank Vice-President for Europe and Central Asia Anna Bjerde praised Ukraine’s resilience and determination in addressing the immediate challenges of recovery and reconstruction.
“Continued support for Ukraine is an investment both in the country and in the global economy. Development partner support for public investment must be complemented by significant private investment to increase available financing for recovery,” he said.
Recall that in December 2022, the World Bank estimated the post-war reconstruction of Ukraine at 500-600 billion dollars. According to Anna Bjerde, both states and private companies should participate in this process.
But in November, Ukrainian President Volodymyr Zelensky announced that more than a trillion dollars would be needed for Ukraine’s post-war reconstruction. The Ukrainian leader also noted that some Western countries have expressed their desire to finance the reconstruction of Ukraine.
Source: Focus
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