Russian strikes destroyed 2.1 million square metres of Ukrainian warehouse space since 2022

Russian forces have destroyed 2.1 million square metres of warehouse space in Ukraine since 2022, with 800,000 square metres — the equivalent of 198 acres — lost in the third quarter of 2024 alone, the National Bank of Ukraine (NBU) estimated in its October Inflation Report.

Storage facilities were struck 153 times between July and September 2024, citing data from the Center for Information Resilience. The NBU said the destruction has pushed rental rates for high-quality warehouse space up 12% to 13% over recent months, as businesses decentralise their logistics networks, lengthen delivery routes, and rely on smaller shipments.

The central bank assessed the combined negative impact of intensified strikes on businesses and infrastructure at a 1.9-percentage-point reduction in real GDP growth in 2024, adding about 0.7 percentage points to annual inflation in the third and fourth quarters. The effect is split roughly evenly between core and non-core inflation — 0.4 and 0.3 percentage points respectively — with almost two-thirds of the inflationary effect falling on food products, particularly cold-chain goods.

Ukraine's annual inflation reached 10% in September, up from 8.1% in August, with consumer prices rising 2.1% month-on-month. Double-digit annual inflation followed again in October, reaching 11%.

Among the largest individual losses, Rozetka, Ukraine's largest online marketplace, suffered 1.5 billion hryvnias ($33 million) in inventory losses after its main warehouse in Brovary was destroyed in August; the warehouse complex including equipment was valued at $75 million. Russian strikes also destroyed Epicentr K's last major logistics hub on 14 October, followed by a 48-hour wave of strikes on 26 October. Nova Poshta, Auchan, and a World Health Organization warehouse struck on 3 September were also hit. The pharmaceutical company Darnytsia, Teva's Ukrainian operations, and foreign-linked businesses including two facilities struck by ballistic missiles on 19 October were among further targets.