Ukraine needs $20B for railway reconstruction after the war

Ukraine needs over $20B for railway reconstruction following the full-scale invasion. This is reported by the railway transport news portal Railway Supply.

Railway reconstruction in Ukraine will cost more than $20 billion and is part of the country’s broader $524 billion recovery plan over the next decade.

Don’t miss…Inland Rail Marks Major Milestone with Wangaratta Upgrade

This estimate was presented by Visual Capitalist and Inigo, based on the World Bank’s fourth Rapid Damage and Needs Assessment (RDNA4), which outlines sector-by-sector recovery needs.

The housing sector suffered the greatest damage — by the end of 2024, 13% of homes were destroyed or damaged. Housing recovery will require $83.7 billion.

The transport sector ranks second in funding needs, with $77.5 billion required — of which $20.3 billion is allocated specifically for railway reconstruction. Another $44.3 billion is needed to repair roads.

Railway reconstruction as part of Ukraine’s transport strategy

Due to Russian aggression, transport infrastructure has incurred $36 billion in damages. Ukraine must not only rebuild but also modernize to enhance logistics and economic resilience.

Railway reconstruction will improve connectivity, expand freight capacity, and attract foreign investment — critical for an export-oriented economy.

Industry and energy demand investment alongside the railway sector

Before the war, the energy sector accounted for 14% of GDP. It now requires $67.8 billion for recovery. The trade and industry sector needs an additional $64.4 billion.

RDNA4 emphasizes the crucial role of the private sector in recovery. Businesses call for regulatory reform, tax incentives, and support for integration into global value chains.

The private sector is expected to become a key driver of growth by generating jobs, fostering innovation, and promoting sustainable development.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: