Ukraine budget may lose $1.5B due to Russian strikes on business - PM

Business

14 September, 09:35 AM

Ukraine could lose roughly 70 billion UAH ($1.57 billion) in tax revenues due to Russian attacks on businesses, Prime Minister Serhii Koretskyi said on Sept. 12.

"Around 70 billion UAH in tax revenues may fail to reach the state budget due to Russian attacks on businesses. This is the estimate as of early September. The strikes continue daily, and this figure could rise," he explained.

To sustain domestic enterprises, the government completed a comprehensive audit of properties held by the State Property Fund of Ukraine, state-owned enterprises, and ministries, opening these warehousing and manufacturing spaces to private commercial use.

Additionally, ministers are preparing a strategic decentralization of the nation's logistics architecture, mirroring the distributed model applied across the energy sector.

The implementation framework is already being coordinated directly with major retailers and logistics operators, while bilateral negotiations continue with neighboring nations to establish a streamlined, flexible border-crossing mechanism.

To offset direct enterprise losses, the government intends to allocate a dedicated program within the state budget.

"The government plans to allocate a distinct budget item — provisionally set at $1 billion — for war-risk insurance; we expect our international partners to expand this amount," Koretskyi emphasized.

"The goal is to build a reserve fund covering 40% to 50% of direct attack damages. The critical imperative is ensuring an exceptionally streamlined procedure and rapid payout response."

Earlier reports noted that on the night of Aug. 5, 2026, a Russian aerial bombardment across Kyiv and Kyiv Oblast killed 17 people as 28 incoming missiles penetrated air defense, causing catastrophic damage to major retail and distribution hubs throughout the capital and its suburbs.

Key Russian strikes targeting Ukrainian logistics and industry

Aug. 5: A mass missile raid across the capital region inflicted billions of dollars in losses on 11 major corporations. The barrage leveled Rozetka’s $70 million Brovary complex — forcing widespread layoffs — alongside core production and distribution assets belonging to Epicentr, Nova Poshta, Silpo (killing six workers), Novus, Intertop, Puma, and Bosch.

Aug. 28: Agrarian Policy Minister Taras Vysotskyi warned that Russian strikes had degraded roughly 90% of logistics infrastructure supporting domestic grocery chains, signaling moderate retail price increases.

Aug. 31 – Sept. 6: Relentless air strikes battered hubs nationwide, damaging an Auchan facility, an Odesa Nova Poshta terminal, an Ukrzaliznytsia rail depot, and distribution centers for Varus, Avrora, and Dnipro-M. Industrial and critical supply targets included an Irpin manufacturing plant, a Coca-Cola facility in Kyiv Oblast, and pharmaceutical hubs Biokon and Teva, which was hit twice in 24 hours.

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