Ukraine Logistics: War Hits Supply Chain

Russian forces struck Ukrainian warehouses 153 times during the third quarter of 2026.

The National Bank of Ukraine (NBU) reported that these attacks destroyed 800,000 square meters of storage space between July and September. This damage contributed to a rise in logistics costs for local businesses. Market estimates indicate that the cost of renting high-quality warehouse space increased by 12 to 13 percent over a few months.

The NBU attributes the rent spike to the decentralization of logistics networks. Longer delivery routes and smaller shipments have driven up transport and storage expenses. The destruction of stock and supply chain disruptions have also reduced the availability and variety of certain products in the market.

Since 2022, a total of 2.1 million square meters of warehouse space has been lost across the country. The bank expects these losses may decline in the fourth quarter as companies spread inventories across multiple locations. Businesses are also carrying out partial repairs to damaged facilities.

The Fozzy Group announced job cuts in September after losing several supermarkets, warehouses, and production facilities. The reductions affected some office staff, employees of the Silpo supermarket chain, and logistics personnel.

The NBU projects that intensified attacks on businesses and infrastructure, along with the port blockade, will reduce Ukraine's real GDP growth rate in 2026 by 1.9 percentage points. These factors are also expected to add about 0.7 percentage points to annual inflation.