Russian strikes caused $7.7 billion in direct damages to Ukrainian business this year, PM says
Prime Minister Serhiy Koretsky stated that Russian strikes have caused Ukrainian business $7.7 billion in direct damages so far this year, with more than 1 million square meters of warehouses, production, and logistics facilities destroyed or damaged. Speaking to BBC Ukraine, as reported by Ukrinform, Koretsky said the economy continues to function despite the damage and outlined government support measures including relocation of businesses to state-owned premises and partial compensation of losses for vessels unable to obtain international insurance.
Key points
- PM Serhiy Koretsky: Russian strikes caused $7.7 billion in direct damages to Ukrainian business this year
- More than 1 million square meters of warehouses, production, and logistics facilities destroyed or damaged
- Government is transferring state-owned premises to businesses for relocation and dispersal of facilities
- 18 billion hryvnia allocated in this year's state budget to compensate interest rates under the 'Affordable Loans 5-7-9%' program
- Vessels entering Ukrainian ports cannot obtain international insurance; the state has taken on partial compensation of damages
- Koretsky stated that despite the damage, the economy continues to function
Why it matters
The figures underscore the scale of economic damage inflicted on Ukraine beyond residential and energy infrastructure, highlighting the vulnerability of commercial logistics and supply chains. Koretsky's statement also signals the scope of government intervention now required to keep businesses operating, from subsidized credit and relocation support to direct state coverage of uninsurable shipping risks.
What happened
Prime Minister Serhiy Koretsky told BBC Ukraine, as reported by Ukrinform, that Russian strikes had caused Ukrainian business $7.7 billion in direct damages this year and destroyed or damaged more than 1 million square meters of warehouses, production, and logistics facilities. He said the economy continues to function despite the destruction. The government is transferring state-owned premises to businesses to enable relocation and dispersal of warehouses and production facilities. Eighteen billion hryvnia is allocated in this year's state budget to compensate interest rates under the 'Affordable Loans 5-7-9%' program. Koretsky also said ships entering Ukrainian ports cannot obtain international insurance because of the high risks, and the state has therefore taken on partial compensation of damages. Earlier reporting by Forbes Ukraine and other outlets detailed specific incidents: on the night of August 5, warehouses belonging to Novus, Epicenter, Rozetka, Silpo, and other companies were hit; Rozetka estimated its damages in the billions of hryvnia, and the EVA chain estimated losses from the destruction of its distribution center in Brovary at approximately 1 billion hryvnia. According to Forbes Ukraine's analytics department, Russia destroyed more than 400,000 square meters of warehouses and logistics complexes from the beginning of July to August 6, and by September 14 at least 500,000 square meters — nearly a third of the market — had been destroyed in Kyiv and Kyiv Oblast alone since July. The government announced its first decisions after a meeting with retailers on August 5, and on August 6 Koretsky said the Ministry of Economy, ARMA, and the State Property Fund would prepare a list of state premises for warehouse dispersal within three days. The Cabinet of Ministers also changed the terms of '5-7-9%' for agricultural producers, lowering the interest rate on working capital loans from 15% to 10%, and the Ministry of Economy later reported preparation of loans at 10% for large business. On September 4, regional military administrations introduced round-the-clock 'single windows' for business and pledged help in creating reserve warehouses. The Cabinet also approved a mechanism of state guarantees to compensate up to 80% of damages caused to civilian vessels by Russian attacks. Since July 22, no vessel has entered the ports of Greater Odesa — the first time since July 2022, according to the Ministry of Agrarian Policy — with Deputy Minister Andriy Kashuba noting that 90% of Ukrainian exports go by sea.
How Ukrainian sources describe it
Ukrainian outlets, including Ukrinform, Forbes Ukraine, and Suspilne Novyny, dominated the coverage and framed the story as one of domestic economic consequences. Reporting focused on major retail and logistics chains — Novus, Rozetka, EVA, Epicenter, Silpo — whose operations were disrupted, and emphasized the government's response: subsidized credit, relocation to state-owned premises, and state guarantees for shipping. The tone combined alarm at the scale of destruction with reassurance from the prime minister that the economy continues to function.