After a year of war, the material damages sustained by Ukraine have exceeded $411 billion USD ($383 billion EUR). This amount is contained in a report published by the World Bank Group in collaboration with the Kiev Government, the European Commission, and the United Nations.
The given amount is 2.6 times greater than the Ukrainian budget for the year 2022.
According to the authors of the report, titled "Rapid Damage and Needs Assessment," the reconstruction and recovery of Ukraine could take more than 10 years, and the value of material losses will continue to grow, as Russia continues the armed conflict.
The document contains a comprehensive assessment of the impact of aggression on 20 sectors, quantifying the direct physical damages to infrastructure and buildings, as well as the impact on the livelihoods of citizens.
In the current year, for example, Ukraine will need $14 billion for critical and priority projects. In addition to financing the recovery of public services and state-owned enterprises, a $5 billion effort will be needed for the private sector.
It should be noted that some of the reconstruction works are already underway, supported by Ukraine's international partners. The EU, the US, the World Bank, and other organizations will be the main contributors to the post-war recovery of the country, which also awaits private investments in its economy.
As for expenditure structure, the largest financial injections will be needed in transport (22%), housing (17%), energy (11%), social services (10%), demining operations (9%), and agriculture (7%). Geographically, the most affected areas are the Donetsk, Kharkiv, Luhansk, and Kherson regions, through which the front line passes.
A view in the Ukrainian city of Mariupol. Picture: NYTimes.
On the other hand, Western politicians are examining the possibility of confiscating assets held by the Russian Federation in banks in Europe and America, which are currently frozen and inaccessible to authorities in Moscow. This amounts to approximately $300 billion in placements in government bonds and other securities. Additionally, Western governments propose to confiscate Russian state and oligarch properties in the EU and the US, the total value of which is currently unknown.
The main problem is the lack of a precedent and legislative basis that would justify the seizures. It would be, in fact, the first time that biblical proportions of wealth are confiscated from a nuclear power and its super-rich citizens.
The European Parliament has published an analysis in this regard, and the UK government and the US Congress have held committee-level discussions on the issue, with no practical results yet.