The cost of rebuilding Ukraine will triple compared to previous damage estimates: Shulyak

According to preliminary estimates, Russia’s hostilities led to the destruction or damage of more than 50% of the housing stock in Ukraine. In some settlements, there are practically no surviving buildings. Decisions on the reconstruction of these towns and villages will be made taking into account many factors, including the possibility of the return of at least half of their population. This was stated by the head of the Verkhovna Rada Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, Olena Shulyak in interview for RBC-Ukraine.
Shulyak referred to estimates by the Kyiv School of Economics, according to which, since the beginning of the full-scale invasion of Russia, direct losses to Ukraine have exceeded 157 billion dollars. The largest losses were recorded in Donetsk, Kharkiv, Luhansk, Zaporizhia and Kherson regions.
The main share of direct losses in these regions is the loss of the housing stock — almost 59 billion dollars, and infrastructure — about 40 billion dollars.
“Only at the beginning of 2024, 50% of the housing stock in a significant number of settlements was damaged or destroyed due to hostilities. The greatest destruction of housing in such cities as Mariupol, Kharkiv, Chernihiv, Severodonetsk, Rubizhne, Bakhmut, Maryinka, Lysychansk, Popasna, Izyum and Volnovakha. Some of them were completely destroyed. For example, in Severodonetsk, 90% of the housing stock was damaged, such cities as Bakhmut and Maryinka have almost no intact buildings.”, – noted Shulyak.
She emphasized that the recovery of Ukraine will cost at least three times more than the current estimate of damages. According to World Bank estimates, the total cost of rebuilding the country over the next decade is $486 billion.
Shulyak also reported that special legislation is being prepared that will regulate all aspects of the restoration of destroyed settlements. The draft law “On the basic principles of recovery” is at the finalization stage, and public consultations have already been held with the participation of more than a thousand experts and stakeholders.
“Now we are collecting all the received proposals, formalizing them and sending them to the Ministry of Reconstruction. They will also finalize them and we will already present a joint product for consideration by the parliament. The need for it is undeniable – a lot of things need to be written down at the legislative level. In particular, how to carry out the reconstruction of destroyed settlements, according to which criteria. There is also the question of the distribution of powers – what the Cabinet of Ministers does, what local self-government bodies do. It is important to record this at the level of the law.”, – she noted.
The decision to restore destroyed cities will be made based on several criteria: the level of housing destruction, the possibility of returning at least 50% of the population, as well as the availability of critical infrastructure – water supply, electricity, heating, etc.
Shuliak emphasized that the restoration of cities and villages is possible only after clearly defining the criteria and preparing the legislative framework for regulating this process.