Russia is waging 'total war' on Ukraine's economy through intensified missile and drone strikes targeting warehouses, ports, and logistics, causing billions in damage. Ukrainian officials say the campaign aims to collapse output and consumer spending rather than secure battlefield gains. The European Bank for Reconstruction and Development cut Ukraine’s growth forecast to 1.5%, warning of possible zero growth.

Meanwhile, Russia faces its own economic strain, with a $68 billion deficit and tax hikes planned. Ukrainian drones have struck Russian oil refineries and e-commerce hubs, causing fuel shortages and inventory disruptions. Air alerts now last all day in major cities, forcing businesses to close and people into shelters.

The war of attrition is reshaping both nations’ economies as infrastructure, trade, and daily life fracture under sustained attack.