Russian strikes choke Ukraine's economy as steel shuts down and grain exports stall

The furnaces are cold, the factory floor deserted, and twisted metal litters the grounds of Kamet Steel, a key industrial complex that once powered Ukraine's economy. Russian attacks have halted steel production, crippling industries like construction, mining, and energy. Grain, a crucial export, piles up in fields and silos as farmers struggle to navigate safe routes and await higher prices.

Russia's intensified air campaign targets industrial plants, energy sources, and logistics networks, disrupting production and raising transport costs. Ukraine's government now faces a deepening cash crunch as revenue from steel, agriculture, and other sectors stalls. The economy is projected to contract by 0.4% in 2026, down from a previous forecast of 1.8% growth.

Ukraine spends 40% of its GDP on defense, a burden it cannot bear alone. Steel production has halted, crippling industries that rely on the metal. The Black Sea trade, vital for agriculture, has collapsed due to Russian attacks on ports and logistics infrastructure. Farmers face the threat of losing money to sow crops, risking future yields.

Ukraine is now confronting its worst cash squeeze since Russia's 2022 invasion, with a funding gap of nearly $25 billion for 2026.