Russia has destroyed 90% of Ukraine's modern storage facilities, minister says

On August 28, Russian strikes have decimated approximately 90% of Ukraine's modern storage facilities, according to Agricultural Minister Taras Vysotskyi during a press briefing. The ongoing attacks on logistics infrastructure pose risks to the availability of goods in stores, although Vysotskyi assures that there is no imminent threat of Ukrainians going hungry.

Due to the continuous destruction of warehouses, businesses are compelled to adapt and explore alternative methods for transporting and storing products. One feasible solution is for suppliers to deliver goods straight to production or retail locations, circumventing traditional warehouse storage. The minister also mentioned that some companies are relocating to different areas; however, Russian assaults have already struck some of these relocated facilities.

Vysotskyi emphasized the need for a balanced risk distribution among supply-chain participants, stating that the state does not take part in commercial or contractual relations within the supply and retail chain. He reiterated that this perspective aligns with the notion of a fair distribution of risks. A lethal Russian ballistic missile assault on August 5, which resulted in 17 fatalities, also targeted warehouses belonging to several supermarket chains and civilian enterprises, as reported by Ukrainian President Volodymyr Zelensky on Telegram.

This assault subsequently led to limited or no supplies of everyday necessities like vegetables, dairy products, and meat in certain stores. The situation was further complicated by customers hoarding items due to apprehensions about worsening shortages. Despite the heightened assaults on warehouses, Ukraine is presently not experiencing food shortages, as affirmed by officials.

The same attack saw a distribution warehouse of Ukraine's leading online marketplace, Rozetka, completely destroyed. Rozetka typically handles over 100,000 orders per day, as per its co-founder, Iryna Chechotkina. Furthermore, the Russian strike on August 28 alone obliterated 14 warehouses in Kyiv Oblast, encompassing facilities housing thousands of books for Ukrainian publishers and bookstore chains.