Russia's invasion of Ukraine and economic crisis both deepening
According to Finance Minister Oleksandr Kubrakov, the damage to infrastructure and fixed assets from Russian airstrikes this year is estimated to have reached approximately 10 billion US dollars.
September 13, 2026
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What you should know
- Russia has intensified airstrikes on Ukraine's infrastructure, industries, and Black Sea ports, causing approximately $10 billion in damage and putting $40 billion worth of exports at risk.
- Officials stated that due to the attacks and port blockades, Ukraine's GDP is expected to contract by 1.5%, and the country will face a harsh winter.
- As the daily cost of the war increases, domestic revenue is insufficient to cover defense spending, leading the government to cut non-military expenses and seek further assistance from Western partners.
KYIV — Ukraine is facing an economic crisis as Russia intensifies its attacks on infrastructure and key export industries, pushing Ukrainians towards facing a difficult and harsh winter, according to Ukrainian officials.
According to Finance Minister Oleksandr Kubrakov, the damage to infrastructure and fixed assets from Russian airstrikes this year is estimated to have reached approximately 10 billion US dollars. Furthermore, due to the cost of the war and blockades at the country's ports, the gross domestic product (GDP) is projected to contract by 1.5%.
Addressing investors, officials, and diplomats at a conference in Kyiv, Minister Kubrakov stated, "Critical infrastructure is being destroyed due to Russia's daily attacks. The overall economic situation of the country is worsening. We are heading into a very difficult winter."
The war in Ukraine has been ongoing for over four and a half years. However, the fighting is not confined to the border areas recently. Instead, both countries are targeting each other's critical infrastructure through aerial attacks.
For more than the past two weeks, Russia has been continuously attacking Kyiv using high-speed jet-powered drones, disrupting daily life, business, and government operations. However, both Russia and Ukraine claim not to intentionally target civilians.
Additionally, Russia has increased airstrikes on Ukraine's southern regions, leading to the closure of ports around the Black Sea. Kubrakov stated that approximately $40 billion in export revenue is at risk due to this blockade.
Ukraine's main products, including agricultural produce, iron, and steel, are transported abroad through ports around the Black Sea.
Difficulty in covering defense costs
With the damage to infrastructure and industries caused by Russian attacks, Ukraine's domestic budget revenue has come under pressure. According to Roksolana Pidlasa, head of the parliamentary budget committee, domestic revenue collected in the first eight months of this year was $1.35 billion below target.
She stated that the war is becoming increasingly expensive, and Ukraine can no longer fully finance its defense needs solely from its own domestic resources as in previous years. According to Pidlasa, Ukraine spent approximately $42 billion on defense in the first eight months of the current year, excluding material military aid. However, only $39 billion was raised from domestic revenue collection and local debt during the same period.
At the conference, she said, "Unfortunately, the war has become so expensive this year that we cannot even cover our share of the expenses." The daily cost of the war has increased to approximately $190 million this year, driven by inflation, an increase in troop numbers, rising social benefits for the families of fallen soldiers, and high arms imports. In contrast, the daily cost was $140 million when the war began in 2024.
The government is seeking measures to cut or suspend non-military budget expenditures and is in discussions with its Western partners for additional financial assistance. However, no clear and swift solution has been found yet.
