Ukraine requires a total state audit and a new economic model rather than the blind restoration of destroyed buildings. Mindless investment in cities lacking jobs or facing high military threats could become a financial blunder of historic proportions.
According to Oleh Popenko, head of the Union of Public Utility Consumers, and urban planner Kostyantyn Funzhiy during a discussion on the Hvylya YouTube channel, old Soviet approaches to resettlement are no longer viable.
Popenko is convinced that the first step must be a global audit of the country. This involves tracking not just surviving infrastructure but the actual population size, available jobs, and energy capacity. Only an understanding of where people can earn a living should dictate where housing and utilities are restored.
"We must talk about building a new economic and energy model. This will be an entirely new Ukrainian territory with different production capacities; it is a different country. We must look at completely new principles of state-building," the expert noted.
The most contentious issue raised was the feasibility of rebuilding settlements in close proximity to the Russian Federation. Popenko questioned the necessity of capital investments in cities under constant threat of shelling where businesses have already fled.
"Should we restore cities in the frontline zone within 50 km of the Russian border? It is a massive question. What is the point of rebuilding them there?" the expert asked rhetorically.
As an example of irrational spending, he cited the city of Shostka in the Sumy region. In 2023, despite its proximity to the border, 53 million UAH worth of medical equipment and an additional 10 million UAH for construction work were allocated there.
"The question is, how many people will actually be able to use that equipment?" Popenko commented.
At the same time, the experts noted that if a city holds strategic economic importance, its restoration is mandatory. They cited Pavlohrad, home to active coal mines and major businesses, as an example.
"There are jobs there, and there is an interest in keeping that city operational. That is logical. But if there are cities near the border where it makes no sense, then all of this must be studied within the model," Popenko concluded.
