Russian Ballistic Strikes on Ukrainian Businesses: “Shelter” Surveyed Market Participants and Experts on Ways to Mitigate the Impact

During massive Russian attacks, he always stays in touch with his team—especially with the employees working the night shift. Two bomb shelters had been set up in advance on the company’s premises in Vyshneve, so when the air raid siren sounded, the employees took cover. That night, the company’s facility was hit twice. The owner learned about the second strike directly from his employees.

“We live in such circumstances that I had anticipated something like this might happen. So when I found out about the strike, there was practically no time for emotions. I immediately started thinking about how to move forward: assessing the damage, talking to suppliers, finding solutions, and reorganizing operations,” says Yuriy Melnyk, CEO of DUS level.

His business became one of many that found themselves in the crosshairs of Russian attacks. For several months now, the Russians have been systematically and deliberately targeting large warehouses, sorting centers, and production and logistics facilities belonging to Ukrainian companies.

Rozetka, "Nova Poshta," "Epicenter," Novus, "Silpo," INTERTOP, Puma, Toyota Ukraine, Liqui Moly Ukraine, logistics operators Raben and "Brockbridge," as well as a number of manufacturing enterprises. In just one attack, at least a dozen and a half large businesses were targeted.

"Shelter" spoke with businesses, industry associations, and experts to find out how Ukrainian companies are adapting to systematic Russian attacks, restoring their damaged logistics systems, and how the government plans to support businesses.

How is the retail sector restructuring its routes?

The Ukrainian Retailers Association says that the latest attacks are a serious blow to the entire retail system, not just to individual companies. The destruction or damage to large warehouses and sorting centers results in the loss of inventory, equipment, and vehicles, disruptions to established routes, and additional restoration costs.

One of the businesses targeted by the Russian attack was the logistics center of the NOVUS supermarket chain. According to the company, the facility sustained several direct missile strikes and was completely shut down. This is the second strike on the logistics center, which supplies goods to the entire chain. The company assures that it is already reorganizing its logistics so that customers do not feel the effects of the attack.

"Although the logistics center has suffered serious damage and is currently out of service, the NOVUS team is already working around the clock to reorganize logistics processes and redistribute inventory. At this time, we do not expect any shortages of food or essential goods in our stores. We are doing everything possible to ensure uninterrupted supply and minimize any impact on customers. “Our top priority right now is to quickly restore our logistics processes and ensure the stable operation of our store network,” the company’s press office told “Shelter.”

Experts explain that the main change in business operations is the shift from an excessive concentration of goods in a single large distribution center to a more decentralized model.

Companies are distributing inventory across multiple warehouses, duplicating routes, engaging more carriers, creating backup logistics hubs, and moving goods more quickly directly to stores.

"The share of direct deliveries from manufacturers and distributors to retail outlets, bypassing the central warehouse, will also grow. It is impossible to completely abandon large logistics complexes: they ensure efficiency, automation, and lower costs. Therefore, businesses will seek a balance between the economic efficiency of a centralized system and the security of a distributed network,” explains Zhuk.

What kind of support is needed from the government?

Vladimir Poperechnyuk, co-founder of “Nova Poshta,” wrote on his Facebook page that although the government is unable to shield the skies from enemy missiles, it can make it easier for businesses to operate, which will ultimately help sustain the economy.

“Today, the scale of losses is even greater, but the government’s policy has taken the opposite direction. Instead of freedom—new taxes, pressure on sole proprietors, excise taxes, and endless inspections. Strangling business amid shelling is helping the enemy destroy our economy. Therefore, for the Ukrainian economy to survive, it needs deregulation, specifically, simplifying international logistics, permits for construction and utility connections, tax holidays for everyone whose property has been destroyed by the enemy, and free economic zones in frontline territories,” Poperechnyuk believes.

Prime Minister Serhiy Koretskyi stated that he had held a meeting with business leaders and government officials to develop specific solutions to ensure the uninterrupted operation of enterprises.

“In the near future, we will hold a separate, focused meeting with the leadership of the National Bank of Ukraine, the banking sector, and the relevant ministries regarding mechanisms for credit support. Standard approaches do not work in wartime—we need rapid and unconventional approaches. At the same time, we are preparing measures to decentralize international logistics and expand the customs corridor. Another area of focus is insurance against war risks. We are counting on the support of our international partners in developing effective mechanisms,” his statement reads. The prime minister also said that the government is ready to provide businesses with priority access to available facilities to decentralize warehouse capacity. "I have instructed the Ministry of Economy, ARMA, and the State Property Fund to prepare a list of such facilities within three days," Koretskyi said.

Economist Oleg Pendzin is convinced that the government must now actively work to help businesses recover.

According to financier Serhiy Fursa, the government should also finally introduce mandatory insurance against war risks.

“All businesses in Ukraine should gradually transition to such a system. This will, of course, entail additional costs for companies, but in return, if a business suffers damage from shelling, it will have a mechanism for receiving compensation. This is roughly the same logic that worked with mandatory auto insurance. The government could make war risk insurance mandatory for everyone. “This would effectively result in risk sharing: there are thousands of businesses operating in Ukraine; everyone pays insurance premiums, but only a fraction of them will suffer losses at any given time,” says Fursa.

How much more resilient has the Ukrainian retail sector become?

The Ukrainian Retailers Association notes that, compared to the start of the full-scale war, the retail sector is now significantly better prepared. In 2022, many decisions had to be made practically from scratch. Today, large companies already have backup routes, alternative warehouses, generators, their own transportation, redundant IT systems, and contingency plans in case a specific facility is lost.

“The main lesson is that you cannot concentrate all critical resources in one place. You need to have multiple suppliers, several routes, backup capacity, and the ability to quickly reallocate product flows. The second lesson is that you need to build up a resilience buffer in advance. Once an attack is underway, it’s too late to look for a backup warehouse, transportation, or a new supplier. And the third is that resilience doesn’t mean there will be no losses,” explains Andriy Zhuk.

According to him, Ukrainian businesses have learned to quickly resume operations, but every destroyed warehouse or store represents significant financial losses, risks to employees, and additional pressure on the entire economy. That is precisely why the retail sector needs not only its own contingency plans but also accessible financing, insurance against war risks, and rapid government mechanisms to support recovery.

“Our business started in Donetsk, and in 2014 we were forced to relocate. Some of our merchandise remained there at the time, and some was stolen by the ‘DPR.’ Until 2022, we had a very strong presence in eastern Ukraine. Mariupol was one of our key cities and markets. Our warehouses, stores—practically everything—remained there. Last year, there was an airstrike on our transit warehouse in Dnipro; the most recent airstrike in Vyshneve caused 200 million hryvnias in damages. “All these years, we’ve been legally documenting all the damage and losses, but we’ve never received any compensation,” says entrepreneur Yuriy Melnyk.

Who will pay for the destruction?

Starting in 2026, Ukraine has implemented a mechanism for partial compensation for destroyed business property and a portion of the cost of insurance against war risks. For businesses in high-risk zones, compensation of up to 10 million hryvnias is provided, while for businesses nationwide, insurance costs are reduced by reimbursing a portion of the insurance premium.

But according to economists, 10 million hryvnias is a negligible amount when the losses of a single enterprise can amount to hundreds of millions or even a billion hryvnias.

Frozen Russian assets remain a potential source of full compensation. However, legally and politically, this process is moving slowly.

According to him, historically, reparations are typically imposed on a state after its defeat in war and the signing of relevant international agreements. This was precisely the case, for example, with Germany after World War II.

“It is very difficult to count on receiving reparations from a country that has not ended the war, has not laid down its arms, and continues to engage in hostilities. That is precisely why I am quite cautious in my assessment of the prospects for rapid compensation for damages using Russian assets,” he says.

In fact, businesses are currently covering the bulk of their losses themselves, using their own reserves, loans, insurance payouts, or by cutting back on investments.

“The government has no other choice but to start providing real assistance to businesses. If entrepreneurs who continue to operate in Ukraine despite the war eventually gather their last funds and leave to invest in Poland, Portugal, or Spain, this will be a blow first and foremost to the state itself. Therefore, the government must take a proactive stance and offer effective support mechanisms—not just on paper or in the form of token assistance—but ones that will allow businesses to stay, recover, and continue operating in Ukraine,” concludes entrepreneur Melnik.