Pentagon finishes allocating $400 million in Ukraine aid

Ukrainian Economy and Environment Minister Oleksandr Kravchenko revealed that air-raid sirens that warn of Russian attacks can remain active for up to 10 hours a day in Ukraine. This prolonged alert period forces most businesses to suspend operations, resulting in significant economic losses. Kravchenko estimated that each hour of an air-raid alert costs Ukraine approximately $45 million.

During a "yellow" alert, which signals a drone threat, businesses are allowed to continue operating, although the danger remains. On September 28, during a "yellow" alert, a Russian drone struck a building in central Kyiv that housed Ukraine's National Academy of Sciences, resulting in two deaths. The Kremlin reportedly aims to weaken Kyiv's defenses before winter, with allegations that Vladimir Putin ordered strikes on civilian sites.

Russian attacks on civilian infrastructure, including factories, warehouses, and data centers, have caused around $10 billion in damage since the beginning of the year, pressuring Ukraine's budget. President Volodymyr Zelensky recently projected a $27 billion shortfall for the 2026 budget, raising concerns among EU leaders. Ukraine needs $52.6 billion in external financing next year, with less than half secured so far. Authorities are considering further spending cuts and tax increases to bridge the gap.

While Kravchenko does not blame mismanagement, corruption, or excessive spending under former Defense Minister Mykhailo Fedorov for the budget deficit, he asserts that the cost of the war is escalating. Ukraine is focusing on strengthening its air defenses and developing drones to intercept Russia's new jet-powered drones. The nation is better prepared for a potentially harsh winter, according to Kravchenko.