Damages from Russian strikes on infrastructure could reach $10 billion a year, according to Kravchenko
Ukraine’s annual losses from the destruction of infrastructure and fixed assets as a result of Russian airstrikes could reach about $10 billion. The cumulative economic impact of this destruction and the blockade of seaports is already estimated at 1.5 percentage points of GDP in 2026.
According to the Ministry of Economy, the destruction of infrastructure and fixed assets due to Russian attacks could cost Ukraine about $10 billion annually.
“According to estimates by the Ministry of Economy, total losses from the destruction of infrastructure and fixed assets are likely to reach about $10 billion annually. The cumulative economic losses from this destruction, as well as from the blockade of seaports, amount to about 1.5 percentage points of GDP this year alone,” Kravchenko said.
Earlier, in its Budget Declaration for 2027–2029, the government projected that Ukraine’s GDP would grow by 1.6% in 2026. In 2027 and 2028, economic growth is expected to accelerate to 4.5% and 5.3%, respectively.
Kravchenko noted that economic losses are mounting amid extremely limited budgetary and fiscal space.
According to him, the government is trying to help communities and businesses prepare for new challenges. Among the main support tools, he cited war risk insurance and preferential lending, which are planned to be expanded in the near future.
“We are currently working with the government to provide businesses with loans totaling up to 1 billion UAH with interest rate compensation, which should ensure liquidity support. We believe this will be an extremely important tool for retailers and supply chain participants, enabling businesses to effectively overcome disruptions caused by the disruption of logistics routes,” said the Minister of Economy.
He clarified that the government will subsidize 5 percentage points of the loan interest rate. Thus, if a bank sets the rate at 15% per annum, the business will effectively pay 10%.
Kravchenko emphasized that Ukraine is continuing negotiations with international partners regarding their participation in support programs.
According to him, guarantees from international partners remain a key element of such programs.
The minister also called on business representatives to participate in a conference in Bukovel dedicated to the private sector and issues of attracting investment amid the war.
“Our top priority is a full commitment to cooperation with international partners in order to attract the maximum possible amount of international support—and, we hope, even more,” said the head of the Ministry of Economy.
According to Kravchenko, it is critically important for Ukraine’s economy to simultaneously restore damaged infrastructure, maintain the liquidity of enterprises, and attract international and private capital.
This was stated by Ukraine’s Minister of Economy and Environment Oleksandr Kravchenko during the annual Yalta European Strategy (YES 2026) meeting in Kyiv.
As a reminder, Ukraine continues to document the damages inflicted by Russia so that the aggressor state will compensate for them in full in the future.
Earlier, Zelenskyy thanked the U.S. Senate for approving harsh sanctions against Russia.
The U.S. Senate supported a sweeping bill imposing new sanctions against Russia and Iran. The bill passed with 68 votes in favor and nine against, and it will now be considered by the U.S. House of Representatives.
