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Russia's Air Campaign Targets Ukrainian Economy

Financial Times Companies •
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Russia's new air campaign targets Ukraine's economy through missile and jet-powered drone strikes on shopping malls, warehouses and distribution centres across Kyiv and industrial regions. President Volodymyr Zelenskyy stated, 'Russia wants to kill the Ukrainian economy and, through that, break our resistance.' The attacks have disrupted major Ukrainian retailers, publishing houses, pharmaceutical groups and Nova Poshta, causing the first supermarket shortages in Kyiv since the 2022 invasion.

A damaged warehouse near Ukrainian toy retailer Budynok Ihrashok became a symbol of the broader economic impact when CEO Maria Nazarenko watched firefighters unable to intervene during ongoing drone attacks. She concluded, 'it was clear there was nothing left to save.' Retailers are now rethinking logistics models completely.

Russian strikes have destroyed 2.1mn sq m of Ukraine's 5mn sq m of modern warehouses, with 900,000 sq m hit in recent months. Ballistic missile strikes disabled Ukraine's three major remaining steel plants, killing 17 workers. Metinvest CEO Oleksandr Vodoviz confirmed, 'As of today, [Ukraine] doesn't have a steel industry any more.' The shutdown affects over 15,000 workers and threatens crucial tax revenues.

The campaign follows Ukraine's own long-range drone operations against Russian refineries and cargo ships, which Kyiv says aims to pressure Vladimir Putin into negotiations.