Damages to Ukraine’s energy sector due to russia’s full-scale invasion exceeded USD 56bn — Kyiv School of Economics

Read in Google News!

As a result of russia’s full-scale invasion of Ukraine, the energy sector suffered damages and losses of $56.2 billion, while the recovery needs, which include the complete reconstruction of destroyed facilities on the principle of “Build Back Better,” amount to $50.5 billion, the Kyiv School of Economics (KSE) estimated.

During the full-scale invasion, approximately 18 GW of electricity generating capacity was occupied, including Europe’s largest nuclear power plant — the Zaporizhzhia Nuclear Power Plant. Additionally, the Kakhovska and Dniprovska hydroelectric power plants and the Zmiivska and Trypilska thermal power plants were completely destroyed.

Private thermal power plants, including the Ladyzhynska, Burshtynska, Dobrotvirska, Kurakhivska, Kryvoriz`ka, and Prydniprovska thermal power plants, suffered critical damage of over 80%. Approximately half of the high-voltage substations for electricity transmission were damaged. russian forces essentially destroyed all oil refineries in Ukraine, as well as a significant portion of the infrastructure for storing oil and petroleum products.

The losses of Ukraine’s energy sector are estimated to be almost $40.1 billion, with the majority of this amount stemming from lost revenues of energy companies — $39.6 billion. The remaining $0.5 billion is attributed to the costs of debris removal and dismantling of damaged facilities.

The restoration of Ukraine’s energy sector requires substantial financial investment, preliminarily assessed by the KSE analytical team at $50.5 billion. This amount includes the financial requirement for the full reconstruction of destroyed and damaged energy infrastructure, considering the principle of “Build Back Better” ($48.5 billion), and $2 billion to address the liquidity needs of energy companies caused by war-related revenue losses.

Читай у Google News!