Rebuilding Ukraine: Strategic Priorities

by the Center for Liberal Modernity (LibMod)

Russia’s aggression has resulted in significant human and material losses for Ukraine. In four years of full-scale war, hundreds of thousands of Ukrainians have been killed or wounded, and millions have been displaced. Approximately 6.9 million Ukrainian refugees are abroad, mainly in Europe, while another 3.7 million are internally displaced. Infrastructure and housing have been severely affected, with approximately 13 percent of all residential buildings destroyed or damaged, leaving more than 2.5 million families without a home. A joint assessment by the Ukrainian government, the World Bank, the United Nations, and the European Commission estimates postwar reconstruction needs at 524 billion US dollars (almost 500 billion euros), a figure that continues to rise due to ongoing attacks on critical infrastructure.

After the war, Ukraine will require the largest reconstruction effort in Europe since World War II. Supporting Ukraine’s recovery is both a moral responsibility and a strategic investment in European stability. A strong, economically integrated Ukraine will strengthen the European Union’s eastern border and contribute to collective security. In contrast, failure to rebuild risks ongoing instability, increased migration, and economic challenges that would affect Western countries. Assisting Ukraine’s reconstruction is therefore in the interests of Germany and the EU, as it supports lasting peace and prosperity across Europe.

That said, we need to move beyond restoring Ukraine to its previous state and instead focus on transforming the country. The goal should be to build a modern economy that generates sustainable income and is fully integrated with the EU’s internal market.

This policy brief by United Ukraine Think Tank Director Igor Popov analyses the key priorities for Ukraine’s postwar reconstruction and formulates recommendations for Germany and the EU on supporting Ukraine’s recovery.