Following the devastating impacts of the war, Ukraine anticipates a staggering €850 billion is required for reconstruction over 14 years.

Ukraine Requires Approximately €850 Billion for Reconstruction

Following the end of the war, Kyiv estimates it will need hundreds of billions of euros for reconstruction. According to Chancellor Merz, Russia should cover a significant portion of this cost. Until then, he promised further weapons deliveries.

The reconstruction of Ukraine is estimated to cost over €850 billion over a period of 14 years, according to Kyiv. “Our concept includes the establishment of two funds,” said Prime Minister Denys Schmyhal, who connected via video to a reconstruction conference in Rome.

€400 Billion Through Private Investments

The first fund, managed by Kyiv and known as the "Ukraine Fund," is expected to be financed through confiscated Russian assets abroad, amounting to over €460 billion. A second fund, with a volume of nearly €400 billion, will reportedly be sourced from private investments.

Schmyhal also urged allies to provide additional financial resources to cover Ukraine's budget deficit in 2026 and 2027. “In peaceful conditions and without arms production, maintaining the Ukrainian army costs €50 billion per year. We are counting on half of that coming from the EU,” emphasized the Prime Minister.

Should Russian Assets Fund Reconstruction?

Chancellor Friedrich Merz also believes that Russia should compensate for the damages caused by its aggression against Ukraine. “We estimate around €500 billion in material damages,” he stated in Rome. “Russia must be responsible for this damage. Until that happens, Russia will not gain access to the frozen Russian assets,” Merz announced.

The state assets, worth triple-digit billions and mainly located in the EU, will remain frozen. Their revenues will continue to secure a billion-euro loan to Ukraine, countering demands such as those from Ukrainian President Volodymyr Zelenskyy, who called for the funds to be directly allocated to Ukraine.

However, Merz hinted that this could change after a ceasefire: “The assets themselves may eventually be liquidated in connection with an appropriate agreement,” he said.

Reconstruction Fund with Private Investors

Around 60 countries, international organizations, and private companies are participating in the two-day meeting in Rome. A new European fund to eliminate war damages has been initiated, which will involve private sector participation. The funds are intended primarily for the repair and reconstruction of energy facilities, as well as for industrial enterprises and data centers.

Since the war began in February 2022, Germany has provided about €34 billion in direct civilian support and approximately €38 billion in military assistance to Ukraine. Additionally, there is Germany's share of European Union aid.

Germany Plans to Purchase "Patriot" Systems for Ukraine from the U.S.

The West is also committed to continuing military support for the country attacked by Russia. The German government intends to buy “Patriot” air defense systems from the United States to provide them to Ukraine for defense efforts. “I spoke with President Trump last Thursday about this and also requested that these systems be delivered," Merz stated at the conference. He did not disclose how many systems Germany intends to acquire, though reports indicate it may initially involve two systems.

The EU also aims to increase pressure on Russia to come to the negotiating table through sanctions. Currently, another package of punitive measures is being prepared, which would be the 18th so far.

Hundreds of Civilians Killed

The massive Russian attacks on cities and civilians in Ukraine continue unabated. Shortly before the conference in Rome began, Ukraine was attacked by around 400 Russian drones and 18 missiles, as stated by Zelenskyy. The night before, Russia had already launched massive attacks on Ukraine.

According to the UN, as many people were killed in June as in any month since the beginning of the invasion three years ago. At least 232 civilians were reported killed and 1,343 others injured during that month, the UN Human Rights Monitoring Mission reported. “Civilians in Ukraine are experiencing a level of suffering that we have not seen in over three years,” said Danielle Bell, head of the UN mission.