Russian-caused war damage to Ukraine exceeds USD 300 billion 

The Kyiv School of Economics, in its project "Russia Will Pay," calculated Ukraine's direct economic losses from the Russian invasion, which were summarized and supplemented by liga.net, writes Euromaidan press.

Residential housing stock

Russian aggression has severely damaged Ukraine’s housing stock. Thousands of homes, companies, shopping malls, and other buildings have been destroyed, raising the cost of the damage to tens of billions of dollars.

The most recent estimates from the Kyiv School of Economics (KSE) project "Russia Will Pay" indicate that by the end of 2022, the damage to Ukraine's housing stock has amounted to USD 54 billion.

The Ukrainian government has outlined the reconstruction of housing as the country’s second top priority after energy, according to Ukraine’s Prime Minister Denys Shmyhal. The restoration of the 150,000 homes that have been damaged or destroyed is a precondition for the return of Ukrainians who had fled the country due to the hostilities, he said.

After the government passed a bill to compensate Ukrainians for properties lost in the war, more than 320,000 applications for compensation have been submitted as of February 1.

Infrastructure damages

Infrastructure is placed second in terms of damage inflicted by the Russian invasion, according to KSE's assessments, with losses totaling USD 35.6 billion.

Agriculture, healthcare, transportation, and other industries are among those that suffered the most losses. The total costs of the devastation caused by Russian aggression are estimated to be USD 8.6 billion, with major damage also being done to educational institutions.

The third in the rank is business losses, more detailed information on which will be below. Energy is the next industry on the list. According to the “Russia Will Pay” project creators, Ukraine has suffered energy losses of USD 6.8 billion. However, the data may not be complete, as these estimates are based on publicly available data since the government typically withholds detailed information about damage to the energy infrastructure.

Business losses

In 2022, Ukraine’s business losses are estimated to total USD 13 billion, with at least 109 major and medium-sized businesses directly affected by Russian aggression. The majority of the destroyed and damaged businesses are concentrated in Kyiv, Donetsk, Zaporizhzhia, Kharkiv, Luhansk, and Mykolaiv regions. The largest assets on the list of losses are large industrial production facilities, particularly the metal giants in Mariupol.

In total, USD 137.8 billion has been lost in infrastructure damages to Ukraine, including business losses.

Defense expenditures

Ukraine’s state budget expenditures on defense and security, which include public order and the judiciary, saw a five-fold growth to UAH 1.59 trillion (about USD 46.8 billion) in 2022 from UAH 301.87 billion in 2021. Defense expenditures totaled USD 1.26 billion in the first 2  months of 2022, which includes preparation for the Russian invasion.

The entire defense spending for 2023 would amount to USD 9.2 billion, taking the average monthly expenditures from the previous year, bringing the total amount spent on security and defense to nearly USD 56 billion. The state budget's expenditures in this category include a sizeable amount for military salaries.

It is important to note that these are only Ukrainian budget expenditures, while Western allies provide the majority of the equipment, weapons, clothing, and other supplies for the military.

International assistance 

A large portion of the Ukrainian budget is set up for defense, leaving little money for other expenses. As a result, Western nations not only provide the necessary weapons and gear but also make up for the significant budget imbalance. Ukraine received more than USD 32 billion in financial support from its allies in 2022, which was used to fund crucial services including social security, healthcare, education, and culture.

While allies frequently make public announcements about their military aid spending, it is sometimes unclear when this help will arrive for security concerns. According to the Kiel Institute, which monitors Western aid to Ukraine in the financial, military, and humanitarian spheres, partners have already given or intend to give Ukraine military aid worth EUR 62.24 billion (roughly USD 66 billion at the current exchange rate) and humanitarian aid worth USD 12.8 billion. 

The institute states that due to a "lack of reliable data," their estimations do not include corporate, charitable, or contributions from some international organizations, like the UN or Red Cross, into account, although this support is estimated to be far less than that offered by Ukraine's allies.

In total, USD 117.3 billion of foreign aid related to the war has been allocated to Ukraine. According to Liga.net, the total comes to USD 311.1 billion when accounting for the destruction of infrastructure, businesses, residences, and homes, as well as the military costs that were not included in the budget.

These figures, however, only take into account the costs and direct losses related to the war. Since it is impossible to calculate how many enterprises lost revenue due to closed ports, how many people left the country and no longer contribute to Ukraine’s economy, how many businesses closed without being struck by missiles, or many other causes, it is difficult to estimate the whole cost of Russian aggression.

Make Russia pay

The government of Ukraine is working towards setting up a comprehensive reparations mechanism, which will include a committee to examine requests from people and businesses harmed by the war. To keep track of the damage brought on by the war, Ukraine’s Ministry of Justice has established a register, intended to be the foundation of the reparations mechanism. The fund will get money from assets seized from Russian enterprises and/or the Russian government. A US judge determined in February that Konstantin Malofeev, a sanctioned Russian businessman, can provide its initial replenishment.

Two working groups were set up by the EU to trace and freeze Kremlin funds so they might be used to rebuild Ukraine, but their confiscation has run into legal obstacles.

A resolution urging Russia to be held responsible for breaking international law and to compensate Ukraine was approved by the UN General Assembly. Moreover, a manifesto by Ukrainian intellectuals calling for post-conflict reparations to address the war's injustice has also been published. Finally, there are proposals about creating a special court to try Russian war criminals who attacked civilians and to compensate Ukraine for the damage they caused during the war.

The UN General Assembly demanded that Russia be held responsible for breaking international law by invading Ukraine and that it pay Ukraine compensation in November 2022.

• Earlier, Prosecutor General of Ukraine Andriy Kostin reported that Russia destroyed more than 81,000 civilian objects in Ukraine and deliberately destroyed energy infrastructure since the beginning of the full-scale invasion.