Ukraine reconstruction may cost $1.1 trillion

Ukraine reconstruction may cost $1.1 trillion

Ukraine may need as much as 1 trillion euros ($1.1 trillion) in outside assistance to repair the damages inflicted by Russia’s invasion, according to European Investment Bank chief Werner Hoyer.

“I’ve put the trillion out there because I saw figures in the public space that I consider completely unrealistic when I look at the level of destruction” in Ukraine, said Hoyer, who runs the European Union’s lending arm. Europe “will have to play the biggest role” in this effort, he told a press briefing in Frankfurt.

The price tag comes as EU leaders are scheduled to meet Thursday and Friday in Brussels to discuss Ukraine’s reconstruction plan and its bid for membership of the bloc. The European Commission first proposed the latest aid package in mid-May to cover part of Ukraine’s financial needs of around 5 billion euros per month.

The EIB could play a central role in funneling money from the EU to the war-torn country. It’s the German government’s preferred channel for the billions of euros that are expected to flow from the bloc, Bloomberg reported last month.

Hoyer also said he’s currently seeking to re-assign EIB commitments worth 1 billion to 1.5 billion euros for the Ukraine reconstruction effort. He may get approval for that as early as this week, he said.

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