Ukraine failed to spend over UAH 7 billion allocated for reconstruction in 2024 — study

In 2024, Ukraine failed to spend more than UAH 7 billion out of the UAH 25 billion allocated for reconstruction. This is stated in the report "Controlling the Costs of Ukraine's Recovery" from the Institute for Economic Research, writes ain.ua.

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In total, in 2024, 640 reconstruction projects worth UAH 17,7 billion were financed under the budget programs of the Ministry of Development.

"The funds for financing reconstruction and restoration in the budget were quite small compared to the needs. But even we were not always able to spend them," comments Oleksandra Betliy, a leading researcher at the IER.

The most common source of reconstruction funding in 2024 was subventions from the state budget to local budgets. Funds also come from:

• international financial organizations — the World Bank, the European Investment Bank;
• reserve fund;
• Ukraine24;
• Fund for the Elimination of the Consequences of Armed Aggression;
• Energy Support Fund of Ukraine;
• private charitable foundations, etc.

Actual subventions under recovery programs at the expense of international organizations amounted to UAH 400 million against the planned UAH 2,3 billion, and under the emergency credit program — UAH 721 million instead of UAH 4,5 billion.

"This is partly due to slow procurement. Sometimes funds are allocated at the end of the year and the customers do not have time to spend them. Also, for projects financed by MFIs, lengthy procedures and the low capacity of individual communities to prepare projects and implement them become problems," explains Oleksandra Betliy.

According to the World Bank's RDNA4 assessment, Ukraine needs at least $524 billion. In 2025, Ukraine plans to spend $17 billion on recovery and reconstruction.

The greatest needs are focused on the energy sector (28% of the total identified needs), housing reconstruction (23%), and transportation (12%).

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