Rebuilding Ukraine may cost $349bn

As the war in Ukraine drags on, the cost of rebuilding the country and its economy has risen dramatically.

Russia‍‍`s invasion caused over $97 billion in direct damages to Ukraine between February 24 and June 1, but it could cost nearly $350 billion to rebuild the country, according to a new report jointly compiled by the World Bank, the European Commission and the Ukrainian government.

But the figure, which totals 1.5 times the 2021 size of the Ukrainian economy, is considered a minimum and is expected to grow in the coming months as the war continues, the report said.

The impact of the invasion will be felt for generations, with families displaced and separated, disruptions to human development, destruction of intrinsic cultural heritage and reversal of a positive economic and poverty trajectory, it added.

The report also estimates that over the next 36 months $105 billion will be needed to address urgent needs such as restoring education and health systems and infrastructure, preparing for the upcoming winter through the restoration of heating and energy to homes, support to agriculture, and repair of vital transport routes.

It offered the first comprehensive damage assessment of the war‍‍`s impact on Ukraine and laid the groundwork for funding its recovery plan, Ukraine‍‍`s Prime Minister Denys Shmygal said.

"After all, only for the first stage, rapid recovery, $17 billion is needed, of which Ukraine needs $3.4 billion already this year," he added.