US EditionUkraine businesses struggle to cope as Russian attacks bring power cuts and uncertainty
Power outages driven by Russia's attacks raise operating costs by up to 20% and cut profitability by half for Ukrainian small businesses, says Kyiv School of Economics.
- This winter, Ukrainian small businesses face around 50% profit declines and 15%–20% higher costs from generators, operating at a loss in December and January.
- Following repeated strikes on the grid, Russia's forces have hit Ukraine's energy grid, causing blackouts, and last month attacks cut water and sewer for one building during a harsh winter that strained small cafés and family-run establishments.
- Operationally, generators burn about 700 hryvnias per hour, with some firms spending nearly 100,000 hryvnias over two months on servicing and buying costly units, as customer numbers drop about 40%.
- Some businesses face imminent closure as the Best Way to Cup project nears shutdown while Ukraine's government operates Points of Invincibility and Rito Group sustains costly backup power.
- The Kyiv School of Economics warns strikes on the energy system are the most acute short-term risk to Ukraine's GDP in the first quarter of 2026, while Ukrainian business owners say survival is now the main goal amid labor shortages, mobilization and migration.
21 Articles
21 Articles
Russian attacks on Ukraine's energy infrastructure are the biggest threat to its economy, which could shrink as much as 3%
The cost of purchasing and operating generators to overcome power outages is just one of many challenges facing Ukrainian businesses after nearly four years of war.
Russian attacks on Ukraine’s energy infrastructure are the biggest threat to its economy, which could shrink as much as 3%
It is pre-dawn in the historic Podil district of the Ukraine capital, Kyiv, and warm light from the Spelta bakery-bistro’s window pierces the darkness outside. On a wooden surface dusted with flour, the baker Oleksandr Kutsenko skilfully divides and shapes soft, damp pieces of dough. As he shoves the first loaves into the oven, a sweet, delicate aroma of fresh bread fills the space. Seconds later the lights go out, the ovens switch off and darkn…
Struggling to Survive: Ukrainian Businesses Battle Power Outages
Ukrainian businesses are grappling with challenges brought on by Russia's bombing campaign targeting the country's energy grid. Power outages have forced businesses to rely on costly generators, leading to increased operational costs and decreased profitability. Despite hardships, many businesses continue to serve their communities amidst plunging temperatures.
Associated Press News
Ukraine businesses struggle to cope as Russian attacks bring power cuts and uncertainty
While businesses were prepared for electricity cuts due to Russian missile and drone attacks on Ukraine’s energy infrastructure, no one expected such a brutal winter.
Emergency power outages implemented across Ukraine, says energy minister - Anadolu Ajansı
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