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Ukraine Puts 2026 Business Losses From Russian Strikes at $7.7 Billion

Prime Minister Serhii Koretskyi says more than one million square meters of property have been damaged or destroyed. A separate survey shows production disruptions and lost working time.

Updated 2 min read
Workers inspect damaged warehouse loading doors in Kyiv, Ukraine. (AI-generated image / EconoTimes)
Workers inspect damaged warehouse loading doors in Kyiv, Ukraine. (AI-generated image / EconoTimes)

Ukraine estimates that Russian attacks have cost its businesses $7.7 billion in direct damage in 2026, Prime Minister Serhii Koretskyi said, as strikes on storage and logistics facilities raise delivery costs.

The Cabinet of Ministers published the figure Oct. 19. In an interview with BBC News Ukraine, Koretskyi said it includes damaged commercial and production premises, along with goods stored in warehouses.

Koretskyi estimated that strikes had destroyed or badly damaged more than one million square meters of property this year. Warehouse and logistics facilities were among the places affected, he said.

For some companies, the damage means taking longer routes to deliver goods and paying more to do so, Koretskyi said. Products are still reaching stores, he said.

The Cabinet said it was offering state-owned premises to businesses that need to move or spread their warehouses and production across different sites. Separately, Ukraine’s 2026 budget provides 18 billion hryvnias in interest subsidies through the Affordable Loans 5-7-9% program.

Koretskyi also said officials had discussed a value-added tax increase with large companies to help finance insurance against wartime risks. He described it as a discussion, rather than an adopted tax change.

A September survey of 467 enterprises by the Institute for Economic Research and Policy Consulting offered a separate measure of the strain on businesses. The institute has surveyed industrial enterprises monthly since May 2022. It found 47% operating near full capacity, down from 55% in August. The share reporting less production than in the preceding month rose to 22.6% from 15.6%.

Air raid alerts caused 58.7% of surveyed businesses to lose working time, while 49.5% reported suspending production, the institute said. Oksana Kuziakiv, its executive director, said only 4.5% of businesses reported no adverse effect from the alerts.

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