As a result of the Russian Federation’s full-scale invasion, Ukraine’s energy sector has suffered direct and indirect financial losses in the amount of $56.2B, while the cost of reconstruction, which involves the complete reconstruction of destroyed objects according to the principle of “better than it was,” amounts to $50.5B, KSE calculates.
The energy sector’s direct losses amount to more than $16.1B, with the biggest losses sustained through the destruction of electricity generation facilities ($8.5B), main electricity transmission lines ($2.1B), as well as oil and gas infrastructure ($3.3B). The energy sector’s indirect losses are estimated at almost $40.1B, with the main share of this amount coming from $39.6B in lost revenue for energy companies.
The cost for restoration of the electric system is estimated at $33.8B, including $29.3B for generation facilities. Another $4.6B is required to restore the electrical system’s transmission and distribution infrastructure. The cost to restore the oil and gas sector is $14.8B, and the district heating sector will cost $1.4B, excluding large CHPs.