Ukrainian Businesses Could Lose $10 Billion Due to Russian Attacks — Kravchenko
In 2026, losses incurred by Ukrainian businesses as a result of systematic Russian attacks could reach $10 billion. At the same time, the government is already developing new mechanisms to support entrepreneurs, which are intended to help maintain the stability of businesses and the economy as a whole, said Oleksandr Kravchenko, Ukraine’s Minister of Economy and Environment.
As the minister explained, the scale of losses caused by enemy strikes is truly unprecedented.
The Cabinet of Ministers of Ukraine recognizes that existing programs—such as loss compensation, preferential lending, and the “5-7-9” program—are not capable of meeting the needs of all businesses. In fact, they are designed specifically for SMEs.
“That is why we plan to expand these programs this year. We are trying to respond to the challenges. But, unfortunately, we are limited in our fiscal resources. To a certain extent, the insurance market is currently functioning in Ukraine, largely backed by reinsurance abroad, particularly through Lloyd’s in the United Kingdom,” Kravchenko emphasized.
According to him, the government is currently facing two systemic problems: it is expensive, and the volume of reinsurance is very limited—and it has now been exhausted.
“We believe that the top priority for supporting the Ukrainian economy right now is to provide state and donor support to launch an expanded insurance mechanism. We want to ensure the most effective use of fiscal resources,” the minister explained.
One of the key potential solutions is to create an insurance fund that would cover first-loss risks. Kravchenko emphasized that this model would provide insurance compensation of up to $10 million.
“So that there are funds to quickly restore critical equipment, retain staff, and not lose contracts. And to get back to work as soon as possible. Such insurance will cost 2% of the coverage amount within the established limit. We are working with the insurance market, which can step in and provide additional coverage for the remaining risks,” the minister noted.
Given that the state itself will assume the initial risk, the cost of such insurance will be much lower. A mechanism like this is indeed capable of providing much broader coverage.
“We are all aware of our limitations; we need to find a source of compensation. Under our model, the compensation fund will be financed from several sources. We expect the state to provide some capital—at least an initial amount—and then donors will also join in. But at the outset, we need capital of $2–3 billion. In other words, we’re saying that this will be a substantial sum on Ukraine’s part,” Kravchenko emphasized.
As a reminder, on the morning of September 12, a Russian drone struck railway infrastructure in the Myrhorod District of Poltava Oblast. Railway equipment was damaged.
On the night of September 12, Russian terrorists struck a facility in the Zhytomyr region again. The enemy strike caused a fire.
On the afternoon of September 12, Russian terrorists targeted yet another gas station. This time, they struck a station in Korets, Rivne Oblast.
