How to Rebuild Ukraine with Security, EU Support, and Grants
A new review explains how to rebuild Ukraine after the destruction of war. It highlights the importance of lasting security, EU accession, and grant-based funding. The study breaks down costs, phases, and reforms to modernize the state and economy. The research is by Torbjörn Becker (SITE/SSE), Yuriy Gorodnichenko (UC Berkeley/CEPR), and Beatrice Weder di Mauro (CEPR/Geneva Graduate Institute/INSEAD).
The Scale of the Challenge
The war has left widespread human and material losses. The World Bank estimates $486 billion in recovery needs through 2023, with other figures running even higher. Therefore, plans to rebuild Ukraine must address the concentrated destruction in Donetsk and Kharkiv, where housing and infrastructure were hit hardest. In addition, more than 6 million refugees remain abroad, while millions are still displaced inside Ukraine.
Building a Path to Recovery
First, the review gathers insights from hundreds of proposals into a clear plan. Moreover, to rebuild Ukraine, the authors stress linking recovery with EU accession, anticorruption, and private investment. Finally, they urge the use of grants instead of loans and recommend creating a single, empowered coordination body aligned with EU standards.
Key Research Findings
Recovery unfolds in three phases: emergency relief, restoring essential services, and long-term modernization tied to EU accession. Policymakers should prioritize grants over loans to avoid debt traps and attract private foreign direct investment with risk-sharing and war insurance. Ukraine must rebuild energy and housing sustainably, replacing old fossil-based systems and inefficient Soviet-era structures. Finally, rule-of-law reforms, transparent procurement, and community involvement play a critical role in preventing corruption and securing investor confidence.
Looking Ahead for Ukraine’s Future
To rebuild Ukraine, policymakers must secure the country militarily while tying reforms closely to EU accession. A lean EU-linked agency should coordinate funding and enforce conditions. Investment in education, reintegration of veterans, and energy efficiency will be essential to protect long-term growth. Future research can identify which incentives are most effective in bringing back refugees and foreign investors.
Meet the Researchers
- Torbjörn Becker: Stockholm Institute of Transition Economics, Stockholm School of Economics.
- Yuriy Gorodnichenko: University of California, Berkeley; Centre for Economic Policy Research.
- Beatrice Weder di Mauro: Centre for Economic Policy Research; Geneva Graduate Institute; INSEAD.
Read The Full Report
Explore the full findings and detailed analysis in the complete report on the Annual Review of Economics website. You can also learn more about the impact of sanctions on Russia through SITE’s project, Sanctions on Russia & the Russian Economy.
