World Bank: physical damage to infrastructure and buildings in Ukraine is about $60 billion

As David Malpass, president of the World Bank, said on Thursday, the damage from the Russian invasion of Ukraine will increase as the war continues.

At the same time, speaking at a World Bank conference on Ukraine’s needs for financial assistance, he noted that an early assessment of the “narrow” costs of damage does not include the growing economic costs of war for the country:

“Of course, the war is still going on, so these costs are rising.”

Meanwhile, Volodymyr Zelensky, in his address to the conference participants in a remote format, outlined the need to finance the economic losses caused by the Russian invasion, at seven billion dollars a month:

“And we will need hundreds of billions of dollars to restore all this later.”

The conference was attended by financiers from a number of countries, including Janet Yellen, the US Treasury Secretary, who previously said the US would double its direct non-military aid commitments to $1 billion.

Zelenskiy called for the money raised from freezing Russian assets to help rebuild Ukraine after the war and pay for the losses suffered by other countries.

Yellen said at a press conference that part of the cost of restoring Ukraine would have to be borne by Russia:

“It is clear that in the end, the costs of restoration in Ukraine will be huge. I think we should strive to ensure that one way or another Russia helps to provide some of what Ukraine needs for construction.”

Regarding the use of the reserves of the Russian central bank in the United States to restore Ukraine, she noted that this would be a “significant step” requiring discussion and agreement with international partners.

The conference was also attended by Denys Shmygal, Prime Minister of Ukraine. He stated that Ukraine’s GDP could fall by 30-50%, and direct and indirect losses today amount to $560 billion. According to the World Bank, this amount is more than three times the size of the Ukrainian economy, $155.5 billion in 2020.

The Ukrainian prime minister noted: “If we do not stop this war together, the losses will increase dramatically.” He believes that Ukraine will need a recovery plan similar to the Marshall Plan after World War II, which helped rebuild war-ravaged Europe, writes REUTERS.

Reference. The Marshall Plan was a program to help Europe after World War II. Nominated in 1947 by US Secretary of State George C. Marshall and effective April 1948. 17 European countries, including West Germany, participated in the implementation of the plan. The plan contributed to the establishment of post-war peace in Western Europe. The goal of its implementation declared by the United States was to restore the war-torn economy of Europe, eliminate trade barriers, modernize the industry of European countries, oust communists from power structures and develop Europe as a whole.

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