Ukraine facing $10 billion deficit for reconstruction in 2025

Ukraine is facing a $10 billion "funding gap" for reconstruction projects in 2025, Prime Minister Denys Shmyhal said on April 2.

Shmyhal's made the comments on social media after a meeting of the Steering Committee of the Ukraine Donor Platform.

According to Shmyhal, international donors have allocated nearly $7.4 billion for "priority recovery projects" in 2025, leaving a nearly $10 billion deficit to finance reconstruction projects in 2025.

"According to the updated RDNA4 (Rapid Damage and Needs Assessment) assessment, Ukraine’s total reconstruction cost is estimated at $524 billion over the next decade," Shmyhal said on Telegram. "With the support of our partners, we continue Ukraine’s rapid recovery program, focusing on five key priorities: energy, housing, critical and social infrastructure, humanitarian demining, and private sector support."

Russia's full-scale war, which recently entered its fourth year, has sparked a deep humanitarian crisis in the country, leaving millions displaced and housing and infrastructure devastated in front-line regions.

Western allies and institutions have continue to support Ukraine with international aid since the start of Russia's invasion. Despite this, Ukraine's direct losses continue to increase, reaching $176 billion at the end of December 2024 compared to $152 billion in February last year.

Although gaps in funding persist, Shmyhal said that Kyiv's budgetary needs are being met through support of international donors, having given or pledged $39.3 billion to support Ukraine, according to a RDNA4 assessment by the World Bank.

"We are already working on securing support for 2026. We are grateful to the G7 countries and the European Commission for supporting the ERA initiative and directing funds to Ukraine from the profits of immobilized Russian assets," Shmyhal concluded.

Earlier on April 2, the World Bank announced that it would provide $432 million to Ukraine in funding to assist with the restoration of transport infrastructure damaged during the war.