WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

Ukraine’s post-war reconstruction represents one of the largest economic challenges in modern Europe, requiring financial resources that far exceed the country’s domestic capacity. This paper argues that the European Union should not view the reconstruction as a burden but rather as a strategic investment in Europe’s long-term security, competitiveness, and resilience. It assesses the scale of Ukraine’s reconstruction needs, examines lessons from previous post-conflict recovery experiences, and analyses potential benefits for the EU from providing sustained financial support to Ukraine. The paper further evaluates policy instruments needed to mobilise private capital, a key driver of long-term recovery, including enhanced de-risking mechanisms, blended finance, and public-private partnerships. The paper concludes that a successful reconstruction strategy will require sustained grant-based international support, stronger investment risk mitigation, continued institutional reforms in Ukraine, and closer integration with the EU, enabling reconstruction to generate lasting economic and strategic benefits for both Ukraine and Europe.