'If People Are In A Bunker, Business Stops': Missile Alerts Cost Ukraine $45 Million An Hour

· Free Press Journal

Russian missile alerts are costing Ukraine an estimated $45 million for every hour that businesses are forced to stop operating, according to the country’s Economy and Environment Minister Oleksandr Kravchenko, as Kyiv tries to keep its economy functioning amid intensifying Russian strikes.

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Russia has increasingly targeted infrastructure supporting Ukraine’s economy, including industrial facilities, warehouses, logistics hubs and data centres. Kravchenko described the attacks as an attempt to “destroy pretty much the entire economy”, The Guardian reports.

“What we had not fully anticipated was how quickly Russia would develop these jet-powered drones and use them to target everything,” he said, referring to weapons that have struck Kyiv in recent weeks.

Kravchenko, a former McKinsey executive who joined the government in the summer, said repeated attacks were bringing large parts of the economy to a standstill as workers headed to shelters. Sirens can last for up to 10 hours a day.

“If people are in a bunker, business stops,” he said.

Ukraine Introduces Two-Tier Alert System

To reduce the economic impact of prolonged air raid alerts, the government recently introduced a two-tier warning system aimed at allowing businesses to continue operating when possible.

A “red” alert indicates a missile threat and requires people to seek shelter, while a “yellow” warning signals a drone threat and allows many businesses to remain open. More than half of businesses continue operating during yellow alerts, according to Kravchenko.

However, a yellow warning does not guarantee safety. On Monday, a Russian jet-powered drone struck the National Academy of Sciences in central Kyiv during a yellow alert, killing two people while staff were working inside.

The incident highlighted the difficult balance Ukraine faces as it seeks to maintain normal economic activity while protecting people from Russian strikes.

Kravchenko said Russian attacks this year had caused an estimated $10 billion in damage to fixed assets, with steel plants, warehouses, logistics infrastructure and, more recently, data centres among the targets. Russia has also effectively blockaded Ukraine’s Black Sea ports, which previously handled the bulk of the country’s exports.

The minister said the government was better prepared for what could be the “hardest, the harshest winter” of the war, with further pressure expected on energy supplies, infrastructure and businesses already weakened by months of strikes.

The government is also discussing ways to allow more private companies to purchase Ukraine’s air-defence system, although Kravchenko cautioned that businesses could never completely protect themselves from Russian missiles and drones.

War Puts Ukraine’s Finances Under Pressure

The continuing damage has added to pressure on Ukraine’s state finances.

President Volodymyr Zelenskyy recently estimated the country’s remaining budget shortfall this year at about $27 billion. Kravchenko said the government had since reduced the gap to $20 billion through spending cuts and additional domestic reserves.

Kyiv is seeking further support from the European Union, Japan, Canada and the UK, including potentially bringing forward loans earmarked for next year.

“There is very active work with all our international partners to get additional sources of funding,” Kravchenko said.

He rejected suggestions that the shortfall resulted from mismanagement or corruption. He also said it was not caused by excessive spending under former Defence Minister Mykhailo Fedorov, whose efforts to overhaul military procurement and rapidly expand Ukraine’s drone programme had made him a prominent government reformer before his dismissal in July, which triggered street protests.

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Instead, Kravchenko attributed the gap to weaker-than-expected state revenues and the growing cost of the war.

“The cost of war is simply increasing,” he said, pointing to Ukraine’s need for additional air-defence systems and faster development of drones capable of intercepting Russia’s new jet-powered weapons.

Corruption Concerns And 2027 Funding Gap

High-profile corruption scandals have also reached Zelenskyy’s inner circle, putting pressure on public trust and Ukraine’s relations with Western donors.

A recent Kyiv International Institute of Sociology poll found that corruption in government was the most frequently cited concern among Ukrainians, named by 50% of respondents, compared with 40% who cited mass missile and drone strikes. The survey also found that 72% believed Zelenskyy bore personal responsibility for corrupt actions by people around him.

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Kravchenko said progress had been made in tackling corruption but acknowledged that Ukraine faced both corruption itself and concerns about its perception at home and abroad.

“I very much appreciate the pressure of European partners on reforms,” he said, adding that Ukraine also needed to address perceptions of corruption domestically and internationally.

Ukraine’s external financing requirement for 2027 is estimated at $52.6 billion, of which about $20 billion has secured or expected sources of financing, leaving roughly $32.6 billion uncovered. The government is also considering further tax increases and spending cuts.

Asked whether the growing influence of parties sceptical about supporting Ukraine in France and Germany could weaken Western backing for Kyiv, Kravchenko said: “Am I worried? I think I should be, probably.”

“The overall fatigue is increasing in Europe,” he added.

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