Building materials for reconstruction of Ukraine require $62.8 billion

Ukraine needs more than 62.8 billion dollars for the purchase and production of building materials for reconstruction.

As reported by Ukrinform, this was announced by Volodymyr Vlasiuk, director of the State Enterprise "Ukrpromzovanshekspertiza", chairman of the Committee of the Chamber of Commerce and Industry of Ukraine on Industrial Modernization, during the round table "Construction Materials. Readiness for the needs of the market for reconstruction."

"We have a figure of more than 62 billion dollars, this study is from November 2022, so now our needs have increased significantly. However, we are already seeing a colossal volume and volumes that can become a challenge for the domestic producer," said Vlasyuk.

In confirmation of his opinion, he noted that in November 2022, the volume of residential destruction caused to Ukraine by the Russian army amounted to 74 million square meters, and at the end of 2023, it increased to 89 million square meters.

"This is a negative dynamic, and most of the destroyed premises suffered more intense damage. This is connected with active combat operations with the use of various types of weapons, as an example - Bakhmut", Vlasyuk clarified.

Taking into account the preliminary evaluation of the examination for November 2022, Ukraine should annually spend more than 24.5 billion dollars. For the creation of building materials necessary for reconstruction.

"Then we calculated the need to implement this plan in three years. However, we understand that modern realities and the pace of reconstruction are completely different, and we will definitely reconsider this decision. More likely, we are talking about five or even seven years," the expert explained.

Among the reasons for the slow pace of reconstruction are the limitations in the workforce, as many workers moved abroad or were mobilized into the ranks of the Armed Forces.

"We also assessed the level of capacity of domestic enterprises in view of the needs of reconstruction. We can state that we have a number of problematic issues, and due to the impossibility of solving them on our own, we are working on them together with the authorities," said the head of the TPPU committee.

According to Vlasyuk's estimates, domestic enterprises can produce about 90% of the building materials required at the stage of restoration, but cooperation with international partners should also be taken care of. In Ukraine, there is no production of sheet glass and ETR switchboards, which are in the lists of necessary equipment and materials. In four more positions (concrete, cement, mineral wool, and PVC profile), the available capacities are insufficient to cover the expected demand during the recovery stage.

"The longer the war lasts and the amount of destruction increases, the ability of the sector to cover demand will decrease. Therefore, we should talk about the field of investment projects, and we should think about them today," Vlasyuk added.

He did not overlook the economic policy of the building materials' industry, which should stimulate and support demand, including civil demand, create conditions for booking key specialists, and also resolve the issue of providing production facilities with autonomous electricity.

Author - Serhii Kolomiets, 17/04/2024