War in Ukraine caused colossal damage to both the country's infrastructure and housing stock. Against the backdrop of destruction and loss in key sectors of the economy, the cost of which has already exceeded $155 billion, the program “єUpdate” becomes an important tool to help affected citizens, especially internally displaced persons. This mechanism makes it possible to restore housing and improve the living conditions of people affected by the war. However, along with the opportunities, the program comes with strict conditions, such as a restriction on selling the property within three years of its purchase. Restoring infrastructure and implementing programs such as “єВідніння” play a key role in returning Ukraine to normal life.
Damage to Ukraine's infrastructure during the war: scale of destruction and economic consequences
Since the start of the war in 2022, Ukraine has suffered colossal losses in various sectors of the economy and infrastructure. Total damages, as of January 2024, exceed $155 billion and continue to rise. Destruction affected key sectors, including housing, industry, energy and agriculture. The damage assessment is carried out jointly with the relevant ministries and the National Bank of Ukraine, and is also based on data from the analytical team of the Kyiv School of Economics, which works within the framework of the “Russia will pay” project.
Main aspects of damage:
- Housing stock. The greatest damage was caused to the residential sector. More than 250 thousand houses were destroyed or damaged. This amounted to $58.9 billion in damage, up $4.8 billion from the end of 2023. Housing restoration will be one of the longest and most difficult stages of reconstruction.
- Infrastructure. Infrastructure damage amounted to $36.8 billion. Infrastructure refers to roads, bridges, railways, airports and other critical facilities. Restoring transport routes and logistics centers will be an important step in returning to normal economic activity.
- Industrial enterprises. 426 enterprises are affected, of which 348 are public and 78 are private. Total industry losses amount to $13.1 billion. Without restoring enterprises, we will not achieve economic independence and sustainability of Ukraine in the future.
- Energy. Damage to the energy sector amounted to $9 billion. The destruction of power plants, transmission lines and other energy infrastructure led to electricity shortages in various regions, which also affected the operation of industrial facilities and the quality of life of the population as a whole.
- Agro-industrial complex. Agriculture, which is one of the key sectors of the Ukrainian economy, suffered losses amounting to $8.7 billion. Damage to agricultural land, destruction of equipment and food warehouses aggravated the situation with food security both within the country and in international markets, where Ukraine was an important supplier of grain.
- Consequences of the destruction of the Kakhovskaya hydroelectric power station. The explosion of the dam on June 6, 2023 led to widespread destruction in the south of the country, flooding agricultural land and destroying infrastructure. This act added significant amounts to the overall losses, and its consequences have yet to be fully assessed.
The damage assessment above is not final as destruction continues and the scale of the disaster is being updated as new data becomes available. Ongoing analysis shows that the volume of destruction is extremely large, and multibillion-dollar funding and long-term reconstruction programs will be required to restore the country.
Ukraine is facing massive infrastructure destruction that is affecting all key sectors of the economy. From housing restoration to industrial and energy restoration, all of these tasks will require significant effort and investment. International support, as well as reparations and assistance in the form of loans and grants, will play a key role in the country's reconstruction after the end of the war.
Growing demand for the “єВідніння” program: opportunities and nuances
In the context of the post-war reconstruction of Ukraine, the “єВідніння” program is becoming one of the key mechanisms for supporting citizens, especially internally displaced persons (IDPs) affected by hostilities. Recent months have seen a noticeable increase in demand for this program as more people begin to apply for and receive financial assistance to improve their living conditions. The program provides the opportunity to restore lost or damaged housing, but it also requires compliance with certain rules.
Reasons for the increase in demand:
- The importance of housing restoration. The war destroyed thousands of houses and apartments, and for many Ukrainians, the “єВіднілння” program has become the main source of funds for repairs or purchasing new housing. Internally displaced persons left homeless see this program as a chance to restore their living conditions.
- Transparency and accessibility of the program. One of the key factors in the popularity of “єVіdnovlennya” is the ease of submitting an application and the transparency of receiving compensation. People who have already used the program confirm that the process is well organized and payments are received into the account on time.
- Guarantees of state support. The program operates under the auspices of the state, which guarantees the safety and legitimacy of financial assistance. For many, this is an important factor when deciding whether to apply.
- Improving living conditions. Program participants have the opportunity not only to restore their homes, but also to improve the conditions in them, which makes the program especially attractive. Many IDPs see “єВіднінні” as a chance to start a new life in more comfortable conditions.
Despite the significant advantages, the “Ednovlennya” program includes a number of conditions that must be taken into account to avoid possible financial complications. It is important to review all requirements carefully before making any decisions regarding a property. Ignorance or inattention may lead to the need to return compensation, which will create additional financial obligations to the state. To avoid these difficulties, we suggest that you familiarize yourself with the main points and conditions:
- terms of sale of property - according to Resolution 280 If housing purchased through compensation is sold or transferred less than three years after purchase, the funds received will have to be returned to the state budget. This rule applies to both apartments and residential buildings with land plots owned by IDPs and their families;
- refund mechanism – refunds can be made voluntarily or by court decision if the conditions for the sale of the home have not been met. This is important to consider when planning real estate transactions.
The eRenewal program opens wide opportunities for internally displaced persons to restore lost housing and improve living conditions. The growth in demand is explained by convenience, transparency and a real opportunity to receive help from the state in difficult times.