Each hour during which air-raid alerts halt business operations in Ukraine costs the economy about $45m.
Economy and Environment Minister Oleksandr Kravchenko said this in an interview with The Guardian.
Russia is increasingly attacking facilities that keep Ukraine’s economy running: industrial plants, warehouses, logistics hubs and data centres. Kravchenko believes the aim of the Russian strikes is, in effect, to destroy a significant part of the country’s economy.
Because of prolonged air-raid alerts, companies are forced to suspend operations and employees to move to shelters. On some days, they can sound for up to 10 hours.
During “yellow” alerts, more than half of businesses keep operating
“If people are in shelters, business stops,” Kravchenko added.
According to the minister, during “yellow” alerts more than half of businesses continue operating. At the same time, this level of warning does not guarantee safety.
Kravchenko said that Russian attacks have caused around $10bn in damage to fixed assets this year alone. Among the sites hit are steelworks, warehouses, logistics infrastructure and data centres. In addition, Russia has effectively blocked Ukraine’s Black Sea ports, through which the bulk of exports passed before the blockade.
The minister believes Ukraine is better prepared for the coming winter, which he described as potentially the most difficult of the war. Further pressure is expected on the energy system, infrastructure and businesses that have already suffered heavy losses from shelling.
At the same time, the government is considering allowing more private companies to buy air-defence systems.
Shelling has worsened Ukraine’s financial problems
The attacks are also exacerbating the state’s financial problems. As Kravchenko noted, the government has managed to reduce this year’s budget deficit from $27bn to $20bn by cutting spending and finding additional domestic resources.Kyiv is counting on additional financial support from the EU, Japan, Canada and the United Kingdom, including the possibility of receiving part of the loans planned for next year ahead of schedule.
- On the eve of this, the National Security and Defence Council reported that in Kyiv from 27 August to 29 September 235 air-raid alerts were recorded with a total duration of 261 hours. That is more than 10 days of continuous threat.