Reconstruction needs amount to $587.7 billion over the next decade.

The financing gap for 2026 exceeds $9.4 billion, concentrated in energy, transport, heating, water and sanitation.

Priority sectors under the Spain-Ukraine Memorandum of Understanding are aligned with the greatest investment needs identified in the report.

As it in previous years since the outbreak of the conflict, the World Bank Group, in collaboration with the Government of Ukraine and the European Commission, has published the Fifth Rapid Damage and Needs Assessment (RDNA5). This report serves as the international benchmark for quantifying the war’s impact and guiding the country’s reconstruction.

Methodology and scope

Covering the period from February 2022 to December 2025, the report examines three core dimensions: direct damage, economic losses and reconstruction needs. This methodology, refined over five editions, provides a comprehensive picture of conditions on the ground and the resources required for recovery.

Impact of the conflict

Beyond the economic figures, the report highlights the devastating human toll: 10 million displaced people (4.7 million internally), over 15,000 civilian deaths and a poverty rate of 36.9%.

In economic terms, reconstruction needs have risen by 68% since the start of the war, now standing at $587.7 billion over the next decade. 68% of direct damage is concentrated in five eastern and southern regions: Donetsk (27%), Kharkiv (17%), Zaporizhzhia (10%), Luhansk (8%) and Kherson (7%).

Investment priorities for 2026

The Ukrainian Government has set out its immediate financing requirements through the State Priority Programme (SPP), identifying 195 priority public investment projects worth $11.27 billion:

• Infrastructure: power generation and distribution, telecommunications, water treatment, rail, bridges and roads.
• Social sectors: housing, healthcare facilities, social protection and education.
• Productive sectors: retail and trade, industry and agriculture.
• Cross-cutting sectors: including environmental protection, public administration and demining.

2026 Financing Gap

According to the report, only 38% of priority needs for 2026 have secured funding. The shortfall exceeds $9.4 billion, with the steepest deficits in energy, transport, heating, water and sanitation.

The priority sectors established under the Spain-Ukraine Memorandum of Understanding—transport, energy, water, telecommunications, agriculture and health—align closely with the largest investment needs identified in the RDNA5. Spanish financial instruments such as FIEM and CESCE can help bridge part of this gap, working in coordination with international financial institutions active in the country.

Despite these challenges, the Ukrainian economy remains operational, with public-private partnership playing a key role in its recovery.

For more details, see full report​​​​