Ukraine braces for harsh winter as Russian attacks hit economy

Ukrainian officials warned on Saturday that the country faces a difficult winter as intensified Russian strikes on infrastructure and key export industries exacerbate a growing budget crisis. Speaking at the YES conference in Kyiv, Economy Minister Oleksandr Kravchenko estimated that damage to infrastructure and fixed assets from Russian airstrikes has reached nearly $10 billion this year. He noted that the broader economic impact, including the de facto blockade of Black Sea ports, has cost the country approximately 1.5 percentage points of its gross domestic product.

Kravchenko stated that the country is preparing for significant challenges regarding both critical infrastructure and overall economic stability. He emphasized that these pressures are mounting at a time when the national budget and fiscal space are already severely constrained. Russia has maintained a near-constant series of attacks on Kyiv using jet-powered drones for over two weeks, disrupting daily operations. Additionally, Moscow has effectively blocked Ukraine’s primary export routes for agricultural products, iron, and steel by targeting southern regions, putting an estimated $40 billion in export revenue at risk.

The financial strain is also impacting domestic revenue, which fell short of projections by $1.35 billion during the first eight months of the year, with one-quarter of that loss occurring in August. Roksolana Pidlasa, head of the parliamentary budget committee, reported that Ukraine spent approximately $42 billion on defense during that period, while domestic revenue and local borrowing totaled only $39 billion.

According to Pidlasa, the daily cost of the war has risen to approximately $190 million this year, up from $140 million in 2024. She attributed this increase to inflation, higher ammunition consumption, expanded troop numbers, and rising social payments for the families of fallen soldiers. As the government faces an additional funding gap for defense through the end of the year, officials are exploring options to reduce non-military spending while continuing negotiations with Western partners for further financial assistance.

Both Russia and Ukraine deny that their respective air campaigns are intended to target civilians.

Article source: koreaherald.com | Image credit: Reuters