Laying the Groundwork for Ukraine’s Recovery and Reconstruction

The Russian invasion has caused devastating damage to Ukraine. According to preliminary estimates, the country’s gross domestic product (GDP) fell by more than 30% in 2022, the largest economic downturn since Ukraine’s independence. Direct infrastructure losses alone are estimated at nearly $140 billion, not to mention indirect financial losses that amount to hundreds of billions more. Reconstruction goes far beyond Ukraine’s own economic capabilities. Total reconstruction and rehabilitation needs already exceeded $350 billion in June 2022, even before Russia launched massive missile strikes on Ukrainian civilian infrastructure in late 2022. This is equivalent to a staggering 150% of Ukraine’s pre-war GDP. Therefore, a coordinated international effort is needed to rebuild postwar Ukraine on a scale that would be the largest undertaking of its kind since the Marshall Plan.

The Ukrainian government presented its National Recovery Plan, which outlines priorities and principles for post-war reconstruction, at an international conference in Lugano in June 2022. Representatives from about 40 countries, as well as the European Commission, the European Investment Bank, and the European Bank for Reconstruction and Development, endorsed the plan in principle and welcomed the idea of creating an international coordination platform for Ukraine’s recovery. However, neither the conference in Luhansk nor the subsequent meeting in Berlin in October 2022 yielded tangible results, and it was only in January 2023 that the G7 finally took the initiative by creating a dedicated donor coordination platform. Despite this, little has been achieved in terms of concrete financial commitments from donor countries.

Source: https://sceeus.se/en/publications/laying-the-groundwork-for-ukraines-recovery-and-reconstruction/#pll_switcher