Ukraine's reconstruction and modernization will cost USD 1 trillion over 14 years – Shmyhal

The reconstruction and modernization of Ukraine, according to government estimates, will cost USD 1 trillion over 14 years. Prime Minister Denys Shmyhal announced this on the Telegram channel, the Ukrainian News agency reports.

"The reconstruction and modernization of Ukraine, according to our estimates, will cost USD 1 trillion over a period of 14 years," he said.

Shmyhal noted this during an online speech at a meeting of the Ukraine Donor Platform in the ministerial level within the framework of the Ukraine Reconstruction Conference in Rome (URC-2025).

He said that the concept envisages the creation of two funds in the amount of USD 1 trillion.

The first is the Ukraine Fund for USD 540 billion, because this is how much the World Bank estimates that the reconstruction of Ukraine will cost, this fund will be formed at the expense of confiscated russian assets, as well as a special tax on the export of russian raw materials.

The second fund is the European Structural Fund for Ukraine, worth USD 460 billion, which will be a platform for European private sector investments in Ukrainian production.

Shmyhal outlined two strategic objectives: to maintain and strengthen sanctions pressure on russia, as well as to provide sufficient financial resources so that Ukraine can resist russian aggression and the challenges associated with it.

The Prime Minister noted that, through joint efforts with partners, Ukraine has overcome most of the financial challenges, launched the ERA financial mechanism for the use of russian frozen assets, Ukraine is implementing a program with the IMF and has sufficient resources to cover the state budget deficit in 2025.

He said that Ukraine offers European partners to invest in European defense through co-financing of the Ukrainian army.

According to him, military spending now amounts to USD 100-120 billion, in peacetime and excluding weapons production, the maintenance of the Ukrainian army will cost EUR 50 billion per year, Ukraine expects that half of this amount will be provided by the EU.

As the Ukrainian News agency earlier reported, Shmyhal previously stated that Ukraine's need for external financing in 2026 will remain at the level of over USD 40 billion.

In February 2025, the Government of Ukraine, the World Bank Group, the European Commission and the United Nations published the results of the updated Fourth Rapid Damage and Needs Assessment (RDNA4), according to which, as of December 31, 2024, the total cost of reconstruction and recovery in Ukraine over the next decade is USD 524 billion.