After three years of war, funding shortfalls in Ukraine risk long-term impact on displaced communities

By Danish Refugee Council

After three years of war, funding shortfalls in Ukraine risk long-term impact on displaced communities

Three years into the full-scale war in Ukraine, the Danish Refugee Council (DRC) emphasizes the need for sustained international support to prevent worsening humanitarian conditions and long-term challenges to the country’s recovery and stability.

As the conflict continues, more than 3.4 million people remain displaced, facing deteriorating living conditions, job losses, and limited access to essential services. Civilian casualties also remain high—January 2025 saw at least 139 civilians killed and 738 injured, a 27% increase from the previous year.

The impact of the war extends beyond immediate humanitarian needs. Gender-based violence is on the rise, with limited access to support for survivors. Landmine contamination and other explosive hazards pose significant risks, restricting movement, agricultural production, and economic recovery. Thousands of injured individuals require ongoing medical and psychological care.

At the same time, housing shortages persist, leaving many in overcrowded and deteriorating shelters initially designed for short-term use. Reconstruction efforts remain insufficient to meet demand, while economic instability continues to limit employment opportunities, leaving many families struggling to make ends meet.

Growing needs amid declining funding

Despite ongoing humanitarian needs, funding for Ukraine has steadily declined—from $3.65 billion in 2023 to $2.5 billion in 2024, a 31.5% decrease. The recent freeze of US funding may further limit the resources available to assist those affected.

“Through our programs, we see that many displaced people in Ukraine are struggling with limited support. Some are returning to unsafe areas, including locations under near-daily bombardment, simply because they feel they have no other option. Without sustained assistance, unsafe returns are likely to increase, putting lives at risk and further straining humanitarian resources. A lasting recovery for Ukraine depends on long-term investments in housing, infrastructure, and economic resilience. Without these commitments, many will remain in limbo, unable to rebuild their lives or regain stability,” says Julian Zakrzewski, Country Director of the Danish Refugee Council Ukraine.