Ukraine reconstruction to cost $1 trn over 14 years – Shmyhal
The reconstruction and modernization of Ukraine will cost $1 trillion over a period of 14 years, Prime Minister Denys Shmyhal said.
"Our concept envisages the creation of two funds in the amount of $1 trillion. The first is the Ukraine Fund for $540 billion, because that is how much the World Bank estimates 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 in Support of Ukraine in the amount of $460 billion. This will be a platform for investments by the European private sector in Ukrainian production," Shmyhal said on Telegram following the results of an online speech at a meeting of the Ukraine Donor Platform within the framework of the Ukraine Recovery Conference (URC2025) in Rome.
According to him, he also outlined two strategic tasks facing Ukraine: to maintain and strengthen sanctions pressure on Russia, as well as to provide sufficient financial resources so that the country can resist Russian aggression and the challenges associated with it.
"Through joint efforts with partners, Ukraine has overcome most of the financial challenges. We have launched the ERA financial mechanism to use Russian frozen assets. We are implementing a program with the IMF. We have sufficient resources to cover the state budget deficit in 2025," he wrote.
Among other things, the meeting discussed attracting financial support for 2026 and 2027.
"We are preparing for different scenarios. We offer our European partners to invest in European defense through co-financing of the Ukrainian army. Military spending currently amounts to $100-120 billion. In peacetime and excluding weapons production, maintaining the Ukrainian army will cost EUR 50 billion per year. We expect that half of this amount will be provided by the EU," he added.