Warehouse destruction costs Ukraine 0.7 points of inflation

Russian forces destroyed 800,000 square meters of warehouse space in Ukraine during the third quarter of 2026, according to the National Bank of Ukraine's October inflation report. This damage resulted from 153 separate attacks on storage facilities between July and September.

The destruction of these facilities has pushed logistics costs higher for businesses. Market estimates indicate that the price for renting high-quality warehouse space increased by 12% to 13% over a few months. The central bank attributes this price hike to the decentralization of logistics networks, longer delivery routes, and smaller shipment sizes.

These factors drive up transport and storage expenses while reducing the availability and variety of products. Supply chain disruptions and lost stock have made specific goods harder to find. The National Bank states that these consequences, combined with the port blockade, will lower Ukraine's real GDP growth by 1.9 percentage points in 2026.

The same report projects that these disruptions will add approximately 0.7 percentage points to the annual inflation rate. Since 2022, Ukraine has lost a total of 2.1 million square meters of warehouse capacity.

The Fozzy Group, which operates the Silpo supermarket chain, announced job cuts in September following the loss of several supermarkets and production facilities. The reductions affected office staff, logistics personnel, and Silpo employees.

The National Bank notes that warehouse losses may decline in the fourth quarter. Companies are spreading inventories across multiple locations and performing partial repairs on damaged facilities to mitigate further impact.