Ukraine's Business Losses from War Reach $7.7 Billion

Published October 19, 202641 views
Ukraine's Business Losses from War Reach $7.7 Billion

As of 2026, the losses of Ukrainian businesses due to the war with Russia have reached an astonishing $7.7 billion. Prime Minister Serhiy Koretsky reported in an interview with BBC News Ukraine that over 1 million m² of real estate, including warehouse and logistics facilities, have been destroyed or significantly damaged this year.

Recovery Costs and Business Support

Koretsky emphasized that the government is actively sharing intelligence and information updates with businesses to help them adapt to the new conditions. Specifically, he noted that:

  • The government frequently holds meetings with business representatives to discuss current issues.
  • At a recent meeting, the proposal to increase the VAT by 1% to create a special fund for compensation of insurance and military risks was discussed.

Changes in Booking Rules

The Prime Minister also mentioned that the number of people who have deferrals or are reserved exceeds those currently serving. Every month, tens of thousands of people receive reservations or deferrals. As a result, the government plans to change booking rules, but these changes will not affect critical companies.

New Russian Tactics and Government Plans

This year, Russia has altered its tactics in striking critical infrastructure, focusing on water supply in Kiev. The government is preparing backup solutions such as:

  • Backup power supply
  • Backup pumping stations
  • Alternative water supply methods

Additionally, the government is working on pension reform, but currently lacks funds in the budget for this initiative due to the existing budget deficit.

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