For residents of Kyiv, recent weeks have brought a renewed sense of unease as plumes of smoke, frequent air raid alerts, and gaps on supermarket shelves have become increasingly common. Russia has launched a series of missile and jet-powered drone strikes across Ukraine since late August, targeting shopping malls, warehouses, distribution centers, and critical infrastructure. These attacks have disrupted major Ukrainian retailers, publishing houses, pharmaceutical companies, and Nova Poshta, the country’s largest private postal carrier.
President Volodymyr Zelenskyy characterized the campaign as an attempt by Russia to "kill the Ukrainian economy and, through that, break our resistance." The strikes have led to some of the first supermarket shortages in Kyiv since the initial phase of Russia’s invasion in 2022. In some stores, signs on empty shelves read, “Russia destroyed this product,” underscoring the tangible impact on daily life.
The offensive follows Ukraine’s own long-range drone operations targeting Russian refineries, warehouses, and cargo ships. Ukrainian officials say their actions aim to reduce Moscow’s revenue streams and pressure Russian President Vladimir Putin into negotiations.
Among the worst hit has been Budynok Ihrashok (House of Toys), a prominent Ukrainian toy retailer, whose new distribution center was destroyed in a drone strike near Kyiv. Firefighters were unable to respond due to air raid warnings, forcing the company to reconsider its logistics strategy, including managing online orders through its network of 67 stores and dispersing stock among smaller warehouses.
Industry experts estimate that approximately 40 percent of Ukraine’s 5 million square meters of modern warehouse space—about 2.1 million square meters—has been destroyed, with 900,000 square meters damaged in recent months alone. The steel sector has also suffered heavily: recent ballistic missile strikes have put the country's three remaining steel plants in the Zaporizhzhia and Dnipropetrovsk regions out of operation, killing 17 workers. These plants, owned by companies including Metinvest and ArcelorMittal, accounted for roughly 90 percent of Ukraine’s steel production.
Oleksandr Vodoviz, head of the chief executive's office at Metinvest, indicated the attacks were precise, targeting blast furnaces. The shutdown of these plants, which employ over 15,000 workers, poses significant economic risks, including reduced tax revenues. Vodoviz added that the timeline for repairs remains uncertain, with possibilities ranging from days to years.
In addition to industrial and commercial targets, Russian drone assaults have damaged railway infrastructure in western Ukraine. One train line was struck shortly after foreign dignitaries crossed into Poland, highlighting the broad geographic scope of the strikes. Over a 24-hour period, some 800 drones were reportedly involved, with petrol stations also targeted in areas far from frontline combat.
These disruptions have contributed to a projected loss of $1.5 billion in tax revenue, according to Ukrainian Prime Minister Sergii Koretskyi, compounding a national budget shortfall estimated at $27 billion for the year. The ongoing Russian blockade of the Black Sea also restricts Ukraine’s exports, cutting agricultural shipments to roughly 40 percent of normal volumes. Agriculture Minister Taras Vysotskyi and industry representatives have noted that many export routes—including the Danube—are largely inaccessible due to strikes and personnel shortages, forcing companies like TAS Agro to store grain in large silo bags in open fields.
Economists warn that the sustained campaign constitutes an economic war of attrition. Olena Bilan, chief economist at Kyiv-based investment bank Dragon Capital, expects Ukraine will likely see no economic growth this year. She noted that businesses affected by the warehouse strikes will need to pass on higher costs to consumers, increasing financial pressures on the population.
The strikes underline the deep interconnection between military actions and economic resilience, as Ukraine navigates sustaining its economy amid ongoing conflict.