Russian attacks have caused about 10 billion dollars in economic damage to Ukraine this year, Minister of Economy and Environment Oleksandr Kravchenko said.
Reporting by British newspaper The Guardian revealed that Russian strikes have targeted industrial enterprises, warehouses, logistics infrastructure, and data centres across the country.
Kravchenko described the campaign as an attempt to destroy practically the whole Ukrainian economy. He noted that officials had not fully anticipated how quickly Russia would develop jet drones and begin deploying them to strike targets nationwide.
Air raid sirens now sound for up to 10 hours a day in some areas, forcing workers into underground shelters and halting commercial operations. Each hour of business downtime during air alerts costs the Ukrainian economy approximately 45 million dollars, although more than half of companies choose to keep working during lower-level yellow alerts.
Black Sea port blockade and air defence
In addition to aerial bombardment, Russia has effectively blocked Ukraine's Black Sea ports. Before the blockade, these maritime routes handled the vast majority of the nation's commercial exports.
The Black Sea ports, including major shipping hubs along Ukraine's southern coastline, serve as vital economic gateways for exporting agricultural produce, steel, and industrial raw materials. Losing access to these sea lanes has severely disrupted trade revenue.
To guard against future strikes, the Ukrainian government is discussing measures that would allow more private companies to purchase their own air defence systems. However, Kravchenko warned that private businesses will never be able to fully protect their facilities from Russian missiles and drones.
International loans and domestic tax proposals
Kyiv is seeking urgent financial backing from international partners, including the European Union, Japan, Canada, and Great Britain. Ukrainian officials are currently examining options to receive early disbursements of loans originally scheduled for next year.
Prime Minister Serhiy Koretskyi stated that Ukraine must secure 20 billion dollars from international partners to cover budget shortfalls through the end of 2026. Koretskyi emphasized that obtaining these funds is essential to maintain domestic weapons production and support ongoing combat operations.
To help protect commercial enterprises, the government included a proposal in the draft 2027 state budget to raise value-added tax to 21 percent. Value-added tax is a general consumption tax levied on goods and services at each stage of supply.
Revenue from the proposed tax increase would help establish a war risk insurance fund of about 5 billion dollars. The fund is intended to provide rapid compensation to businesses that suffer financial losses or facility destruction due to war-related events.
