Updated Ukraine Recovery and Reconstruction Needs Assessment Released

Nieuwsbericht | 25-02-2025 | 13:53

PRODUCTIVE SECTORS - Agriculture

Damage and Loss Assessment

Total damage in the agriculture sector amounts to US$11.2 billion, while losses amount to US$72.7 billion (Table 17), noting adjustments to assumptions indicated below. The damage includes the partial or complete destruction of storage facilities, fisheries and aquaculture, and perennial crops, as well as the forced slaughter of livestock. It also encompasses the destruction and theft of machinery and equipment and the theft of inputs and outputs. Machinery and equipment damage accounts for the largest share of total damage (58 percent), followed by damaged storage facilities (17 percent) and stolen inputs and outputs (17 percent). As of December 2024, the damage in the sector had increased by only 9.2 percent compared to December 2023 (RDNA3), as most assets located in active fighting zones had already been damaged during the first year after Russia’s invasion of Ukraine. The highest damage values were recorded in Luhanska, Zaporizka, and Khersonska oblasts, collectively representing 65 percent of the total damage.

Human impact:

The livelihoods and food security of residents in the affected regions has been severely impacted. By October 2024, nearly 40 percent of settlements in Donetska and 18 percent in Kharkivska faced “extreme” or “extreme+” levels of food security vulnerability, up from 20 percent and 2 percent correspondingly this summer, indicating deteriorating food security in frontline areas.254 In these two regions alone, there are 25 settlements where over 25 percent of residents were unable to access adequate food despite significant humanitarian assistance.

Recovery and Reconstruction Needs, including Build Back Better

The total recovery and reconstruction needs in the public sector are estimated at US$55.5 billion over 10 years (Table 18).256 To ensure that the agricultural sector recovers, drives the overall economic recovery, serves as a decent income source for farmers and rural population, and provides food for the Ukrainian population, several investments are especially important. These include investments to address liquidity constraints, promote resilience to disasters and climate change, support integrated food-energy systems, and strengthen the agricultural public institutions to effectively support recovery and reconstruction. Compared to RDNA3, needs decreased by 1 percent, primarily due to the downwards revision of the sum needed to strengthen Ukrainian public institutions. Other parts of needs increased, the increase occurred primarily due to the US$1 billion increase in reconstruction needs, which reflects the increase in damage and the addition of the debris removal category.

Needs are concentrated in the following areas:

Completing reconstruction or replacement of damaged assets while accommodating the build back better principle and conducting debris removal and demolition for damaged property

Supporting the sector's longer-term recovery and sustainable development by advancing diversification and inclusiveness, efficient value chains, climate resilience, and social sustainability

Scaling up investment in agricultural public institutions to promote evidence-based policy making on agriculture and rural development, which includes agricultural services (sanitary and phytosanitary measures, food safety, land monitoring and registration, soil testing for precision agriculture, agricultural research and extension services, training and retraining of farmers and staff of agribusinesses, etc.) so the institutions can better support the sector’s climate-resilient recovery.

Irrigation and Water Resources

Ukraine’s irrigation and water resource sector has been severely impacted, causing extensive damage to critical infrastructure and disrupting vital irrigation systems. The irrigation and drainage infrastructure has suffered attacks, such as the destruction of the Kakhovka Dam in June 2023, and has experienced widespread damage from fighting, vandalism, and defensive measures like inundations.

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Key subsectors, such as irrigation of high-value crops (like tomatoes, potatoes, and rice) and drainage systems vital for cereal and beef production, have been severely disrupted, threatening national food security and economic stability

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During 2024, new challenges emerged. Frequent power outages at pumping stations delayed water services, thereby reducing water availability for farmers and other users. An 80 percent rise in energy prices in 2024 further strained farmers' economic capacity; many were forced to halt irrigation, leading to reduced crop yields and broader economic losses. These disruptions also worsened the technical condition of hydraulic infrastructure, increasing future repair costs.

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Damage to Ukraine’s irrigation and water resources sector is concentrated in Khersonska, Zaporizka, and Chernihivska oblasts.

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Recovery efforts have included ongoing reforms, the establishment of 54 WUOs, and subsidies under Resolution No. 1110 to rehabilitate pumping stations and construct modern systems such as sprinkler and drip irrigation. These initiatives align with the emphasis of the Water Framework Directive (2000/60/EC) on sustainable and integrated water management. Also relevant to recovery efforts is the GoU’s adoption in 2024 of nine river basin management plans that contain lists of measures for 2025– 2030.258 Investments in restoring and modernizing local water infrastructure, alongside enhanced cooperation between institutions, are essential to address current challenges and ensure resilience in Ukraine’s water sector.

Human impact:

The destruction of the Kakhovka Dam and of canals, pumps, and reservoirs has disrupted water access for agriculture and households, severely affecting rural economies and increasing environmental and health risks from pollution and inadequate water treatment. The loss of governance in water resource management hinders restoration efforts and extends service disruptions.

Recovery and Reconstruction Needs, including Build Back Better

include constructing new water retention infrastructure, water transfer canals, and small-scale irrigation and drainage systems that can store surface water, groundwater, and floodwaters for irrigation and other community needs. Priority is given to areas with current water deficits, particularly regions affected by the Kakhovka Dam's destruction, and those at risk of future droughts due to climate change. Khersonska oblast has the highest investment needs which includes major repairs to the Kakhovka Dam and pumping station to restore irrigation.

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Other priority areas are Odeska, Zaporizka,  Poltavska,  Rivnenska oblasts. There is a critical need for targeted recovery and modernization efforts to restore functionality and enhance productivity.

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The difference between damage and recovery needs lies in the broader scope of rebuilding efforts, which extend beyond immediate repairs to include modernization, expansion, and resilience-building measures for sustainable water management. While damage assessments focus on physical destruction, 259 Farm-level data and evaluation of loss categories for irrigation and drainage systems are from the Institute of Water Problems and Land Reclamation and the NGO Primavera. 129 recovery needs address future resilience, institutional reforms, and upgraded infrastructure to meet evolving challenges and standards.

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