The Government of Ukraine, the World Bank Group, the European Commission and the UN have revised upwards their assessment of Ukraine's needs for recovery as of February 24, 2023 to $411 billion from $349 billion as of June 1, 2022.

"Reconstruction and recovery costs are expected to span 10 years and combine the needs of both public and private funds," the World Bank said in a press release on Thursday following the Second Rapid Damage and Needs Assessment (RDNA2), which gives a comprehensive overview of the consequences of the war in twenty different sectors.

RDNA2 estimates that Ukraine will require $14 billion in investment in 2023 for early recovery and reconstruction, while the RDNA published in early September 2022 estimated the need for rapid recovery at $17 billion, of which $3.4 billion in 2022.

The solution to these needs will require $11 billion in financing in addition to what the government has already provided for in the state budget for 2023, the World Bank said.

According to the World Bank, this amount includes further funding of the government budget in the amount of $6 billion and close to $5 billion to facilitate critical investments by SOEs and the private sector.

"Conducting the second Rapid Damage and Needs Assessment is an important element in Ukraine’s reconstruction strategy… Energy infrastructure, housing, critical infrastructure, economy and humanitarian demining are our five priorities for this year," the press service said, citing Ukrainian Prime Minister Denys Shmyhal.

He thanked partners from the EU, the United States, and the World Bank for the work done. The prime minister said that the amount of damage and recovery needs currently does not include data on the loss of infrastructure, housing and businesses in the occupied territories.

"The EU is determined to continue supporting Ukraine, now a candidate country, with all its tools and instruments at its disposal for as long as it takes. The rapid needs assessment will help donors channel funds to the priority sectors on the ground," Commissioner for Neighborhood and Enlargement Olivér Várhelyi said.

He said that the EU is fully focused on ensuring fast recovery and providing basic services for the population, namely energy, education and health infrastructure and housing.

The RDNA2 assessment finds the total estimated reconstruction and recovery needs to be $411 billion, 2.6 times the country's estimated 2022 GDP. The needs – estimated for the next decade – consider inflation, market conditions, surge pricing in areas of mass construction, higher insurance premiums, and a shift in the future towards lower energy intensity and more resilient, inclusive, and modern design.

The highest estimated needs are in transport (22%), housing (17%), energy (11%), social protection and livelihoods (10%), explosive hazard management (9%), and agriculture (7%). The largest proportionate increase in damages was in energy, where damage was more than five times greater than in June 2022.

The geographic areas with the greatest increase in needs are frontline regions of the war: Donetsk, Kharkiv, Luhansk, and Kherson.

"Ukraine's recovery and reconstruction will take several years but the good news is that the country's resilience and determination as well as partner support during the invasion is containing damages and reducing the needs," World Bank Vice President for Europe and Central Asia Anna Bjerde said.