Podcast “Reconstruction” with Olena Shuliak: Restoring the Country on the Principle of “Build Back Better”

Key reconstruction aspects

The most fundamental changes in the country are closely tied to European integration. When we talk about reconstruction processes, it is clear that we cannot move forward without aligning our legislation, approaches, and standards with those of Europe. This encompasses energy efficiency, inclusivity, innovative approaches to building materials, and more.

These efforts are direct outcomes of the process of Ukraine’s ongoing accession to the European Union. A presidentially mandated working group is actively addressing these areas. 

On digitalization and eReconstruction

The second fundamental change that has already taken place is digitalization. Digital processes drive systems such as “Dream,” which ensures transparent recovery management, and the eReconstruction program, among others.

Statistics show that most eReconstruction applications are submitted via Diia. Initially, there were concerns that older adults might face challenges using the system. However, one of the first applicants through Diia was an older woman, reportedly 78 years old, from the Donetsk region. Her grandson helped her navigate the procedures, and they received compensation and completed the necessary repairs.  

It’s important to remember that the State Register of Property Rights, which holds government records on real estate, has only been operational since 2013. Prior to that, property records were maintained on paper. Since then, a significant amount of property information has been added, so today, roughly half of the records are in the State Register, while the remaining records exist as physical documents held by individuals. When working with people who want to use the eReconstruction program, we strongly encourage them to visit an administrative services center, notary, or state registrar to document their ownership in the State Register of Property Rights. Once this is done, they can proceed to receive compensation.

On the reconstruction scale

Recently, the World Bank, together with the Infrastructure Ministry, conducted the Third Rapid Damage and Needs Assessment (RDNA3). According to this assessment, Ukraine’s war losses amount to UAH 486 billion, with direct damages exceeding UAH 150 billion. However, we understand these figures are not final, as new attacks and destruction have occurred since the report was released.

Among the most affected sectors, transportation infrastructure ranks first. Since the beginning of Russia’s full-scale invasion, more than 23,000 kilometers of roads have been damaged or destroyed. This represents a massive loss, especially given Ukraine’s significant efforts to repair and construct roads before the full-scale war.

The second most affected sector is housing. It’s alarming to realize that before the full-scale invasion, approximately 10 million square meters of housing were commissioned annually. Now, what we built over more than five years has been destroyed in just two and a half years of war (the conversation took place in August—ed.).

Reconstruction is already underway, and we all aspire to see a strong, capable country emerge. Every community must engage in quality development planning. Today, communities must ask themselves critical questions: What steps are they taking to attract businesses? How do they plan to support veterans and youth and ensure accessibility? Recovery planning must be both comprehensive and well-executed. Currently, numerous documents exist at local, regional, and state levels, but they are sometimes uncoordinated. The task ahead is to sort them out to ensure they are in harmony and form a solid foundation for long-term development. 

Inclusivity is also vital, requiring the involvement of all residents in decision-making. Decentralization has granted communities greater authority and funds, but it is equally important for residents to have real influence over decisions. The adoption of Bill No. 7283 in May, which focuses on people’s power at the local self-government level, provides mechanisms for this, such as increased influence through electronic petitions. 

Nevertheless, many questions remain unanswered. For instance, should everything be rebuilt, especially given that Ukraine’s demographic situation is changing, and unfortunately, some people may not return? This demographic reality will have a significant impact on restoration efforts. 

On the return of citizens

Some communities understand that internally displaced persons are a valuable human resource and do everything possible to ensure they stay. Others, however, see them as a temporary phenomenon. Communities that recognize the importance of human capital will ultimately be more competitive.

The situation with our citizens abroad is more complex. Mostly, women with children left due to the threat to their lives, and now, as the war enters its third year, the children have started school, and daily life has been established. 

The state is already working to establish specialized institutions to maintain connections with Ukrainians living abroad. However, creating the right conditions in Ukraine to encourage their return is also important.

Security will be a key factor, but other critical elements include opportunities for work and personal development, reliable protection of property rights, a transparent judicial system, and ongoing efforts to fight corruption. If Ukraine can establish such conditions, people will want to return, work, and develop here. 

Life abroad comes with its own challenges. Ukrainians living in Europe often admit that earning a good income requires hard work, and taxes and utility costs, such as heating and electricity, are high. Some services in Ukraine are of higher quality than in Europe–we have better dentists and hairdressers. Moreover, the development of electronic services in Ukraine far surpasses that in other countries, where people often have to wait long and deal with extensive paperwork. Here, everything can usually be completed with just a few clicks in the Diia app.

While the provision of quality services alone is not the main factor, it demonstrates that Ukraine is evolving and improving. This progress could serve as one of the incentives for our citizens to return home. 

Where to find the money for reconstruction

I think the main obstacle is the availability of funds. Do we have the money? Will international partners help? And do we know how to use available credit mechanisms? Currently, we cannot afford large-scale construction or reconstruction to the extent we would like.

At the moment, most of the funds are going toward defense needs. The 2024 budget is even referred to as the “defense budget,” with over UAH 1.3 trillion allocated for defense purposes. International partners help us with weapons, but they do not cover expenses like military salaries or other daily army costs—Ukrainian businesses fund these through taxes. 

The state’s priority should be to create conditions that discourage businesses from leaving the country. After the victory, those operating in Ukraine will become the key source of funds for reconstruction.

On oversight of allocated funds

Three days after the Kakhovka Hydroelectric Station was blown up, work began on designing and constructing a water pipeline to ensure access to water for a million people. And it was successful—recently, over 150 km of the pipeline were fully operational, and people received water. This project was completed efficiently and quickly. It is a unique facility, a result of fast coordination between the Regional Development Ministry and the Restoration Agency, which managed to bring together experts and find effective solutions.

Another example is the “Okhmatdyt” project. In this case, it’s more appropriate to take extra time on preparation, procurement, and technical issues. After all, this is a facility where every technical detail is critically important. Making the wrong decisions could have serious consequences, so it’s better to spend more time preparing and ensuring the proper quality.

At the start of the reconstruction efforts in the Kyiv region, I met with the mayor of Irpin. He showed me the damaged apartment buildings and asked how to proceed. With the available budget, he could restore five buildings using old standards or only two buildings using new energy efficiency standards. My answer was clear: restore two buildings, but do it properly, as temporary solutions often last for years. So, we need to answer a key question: what principles will guide our reconstruction?

We held public consultations on a new legislative framework for reconstruction. Among the key principles were “building back better” and “human-centeredness.” Participants in the discussions highlighted the importance of “green” reconstruction, energy independence, and security. These must remain priorities because challenges like energy independence will persist for years to come.