Russian attacks cost Ukrainian businesses $7.7 billion in 2026, prime minister says

Russian attacks have inflicted an estimated $7.7 billion in losses on Ukrainian businesses since the start of 2026, Prime Minister Serhii Koretskyi stated in a recent BBC News Ukraine interview. Over 1 million square meters of real estate, predominantly warehouses and logistics facilities, have been destroyed or severely damaged throughout the year, according to Koretskyi.

The $7.7 billion figure encompasses damage to business premises, manufacturing sites, and goods in warehouses, and this substantial amount is expected to continue increasing. The attacks have also brought about considerable operational disruptions and diminished production for Ukrainian businesses, which have been enduring the ongoing invasion now in its fifth year.

A monthly survey conducted by the Kyiv-based Institute for Economic Research and Policy Consulting among 467 companies revealed that fewer businesses are operating at full capacity, while the proportion of companies reporting lower production volumes has reached its highest level in recent months. Moreover, 47.5% of companies stated they cannot predict their business outlook in two years, up from 40% in August.

Operational disruptions persist, with 58.7% of companies losing work time due to air raid alerts and 49.5% having to suspend production during these alerts. In response to these challenges, the government is contemplating measures to mitigate wartime risks. Koretskyi disclosed that the government has suggested raising value-added tax (VAT) by one percentage point to create a special fund for compensating businesses against war-related risks.

This proposal was discussed in an online meeting with major companies earlier, but extensive consultations on other policy changes, such as exemptions from mobilization, have not been as extensive.