Russian strikes will cost Ukraine’s economy up to $10 billion this year, ministry says

Ukraine's Economy Ministry projects Russian strikes to inflict losses amounting to up to $10 billion this year, with plans to present a three-part business support package to the Cabinet by next week. Economy Minister Oleksandr Kravchenko announced this on September 12. Russia has intensified drone and missile assaults on Ukraine throughout 2026, initially targeting power plants, substations, and residential areas, and subsequently broadening the targets to encompass trains, factories, large retail warehouses, and medicine depots.

Agriculture Minister Taras Vysotsky stated on August 28 that Russia has destroyed approximately 90% of retail chain food logistics, but assured that supply would transition to direct deliveries with minimal impact on basic food availability. Kravchenko emphasized that business plays a crucial role as a funding source for defense forces, ensuring essential goods are supplied and communities can operate normally.

The three-part package aims to aid businesses impacted by Russian strikes, offering three key elements. The first involves extending the geographic scope of existing damage compensation programs to include Kyiv and Kyiv Oblast, along with streamlining the application process to alleviate delays in receiving assistance. The second component enlarges subsidized lending for large businesses, offering loans up to roughly $22 million (UAH 1 billion) with an interest-rate subsidy of about 5 percentage points.

These loans can finance investment projects, including fortification and protection measures, as well as working capital. Lastly, the third part seeks to broaden the state's 5-7-9 lending program, which determines the borrower's rate at 5%, 7%, or 9% depending on the loan's purpose and the business size, to suppliers whose major retail clients are suffering financial losses due to strikes.

Kravchenko mentioned that all three programs have been finalized and anticipates businesses will start receiving substantial support within the coming weeks. The package followed a meeting with President Volodymyr Zelenskyy and consultations with businesses, according to Kravchenko. Russian strikes have significantly damaged logistics networks and businesses throughout Ukraine.

An overnight strike on Kyiv and Kyiv Oblast on August 5 resulted in 17 deaths and extensive damage or destruction of warehouses and distribution centers belonging to major companies such as Rozetka, Epicentr, Nova Poshta, Silpo, and others. Co-founder Iryna Chechotkina described Rozetka's warehouse complex in Brovary, valued at $70 million, as irreparable.

The same strike claimed the lives of six Silpo employees. Subsequent strikes through early September targeted Auchan, Nova Poshta again, Varus, Dnipro-M, and Coca-Cola.