Every hour that Ukrainian businesses are forced to halt operations due to an air raid alert costs the economy approximately $45 million. Due to Russian missile and drone attacks, workers seek shelter, production comes to a standstill, and logistics and service companies lose working hours. Meanwhile, since the start of 2026 alone, Russian strikes have caused damage to Ukraine’s fixed assets amounting to around $10 billion.
Businesses are losing millions for every hour they are at a standstill
The Minister for the Economy and the Environment of Ukraine announced the estimate of the economic losses Oleksandr Kravchenko. According to him, Russian attacks are increasingly targeting infrastructure on which the functioning of the Ukrainian economy directly depends. This includes industrial plants, warehouses, logistics centres, data centres and other facilities.
The problem lies not only in physical damage. Even if a business has not been directly targeted, a prolonged air raid alert can effectively bring its operations to a standstill. Employees must take shelter, and some production processes cannot be carried out remotely.
According to estimates by the Ministry of Economy, Each such hour costs the country approximately $45 million in lost economic activity. On some days air-raid sirens can last up to ten hours.
Russian strikes have already caused around $10 billion in damage
Separately, the Ministry of Economy is assessing the direct losses to fixed assets. In 2026 alone, Russian strikes caused damage amounting to approximately $10 billion in losses.
The targets of the latest attacks included industrial sites, logistics infrastructure, warehouses and data centres. Russia has also stepped up its use of high-speed jet-powered drones, which are capable of attacking targets during the day and covering the distance to their target much more quickly.
For businesses, this amounts to a double blow: some are directly losing production capacity, whilst others are forced to halt operations due to constant unrest.
A two-tier warning system has been introduced in Ukraine
To minimise economic losses, the government has begun to use a two-tier air-raid warning system.
«The »red’ alert level indicates an imminent missile threat and requires people to take shelter.
«The »yellow’ alert is issued, in particular, when there is a threat from drones. At this level, some businesses may continue to operate in accordance with the established safety regulations.
According to the Ministry of Economy, More than half of businesses continue to operate during yellow alerts. However, a lower alert level does not mean there is no danger. Russian drone strikes have already targeted civilian facilities, even at times when businesses and public institutions were still operating.
Businesses may be allowed to invest more in air defence
Against the backdrop of a rise in the number of attacks The government is also discussing the possibility of greater private-sector involvement in funding business protection measures.
Among the options is the creation of mechanisms that would enable companies to procure or finance air defence systems to protect critical production and logistics infrastructure. At the same time, the Ministry of Economy acknowledges that it is impossible to fully protect enterprises from missiles and attack drones relying solely on the private sector.
Russian attacks are becoming one of the key factors putting pressure on the Ukrainian economy, alongside rising military expenditure and the need to secure additional external funding.
