Russian attacks have destroyed about 90% of Ukraine’s modern facilities for storing goods, significantly disrupting the country’s retail logistics, Ukraine’s Agriculture Minister Taras Vysotskyi said on 28 August, according to Interfax-Ukraine.

Russia has increasingly targeted Ukraine’s civilian commercial and logistics infrastructure in recent weeks, striking warehouses, distribution centers, hypermarkets, postal terminals and other facilities that keep goods moving through the country. The campaign has damaged supply chains and forced businesses to find more expensive and vulnerable ways to store and deliver products.

Vysotskyi said the destruction does not pose a threat of famine, but warned that continued Russian attacks on logistics infrastructure could affect the range of products available in Ukrainian stores. Supermarkets in Kyiv have already seen widespread empty shelves in recent weeks.

Retailers forced to change how goods are delivered

The destruction of warehouses has forced retailers to change how they move products around the country, with deliveries increasingly being made “from the wheels” rather than through conventional storage and distribution facilities, Vysotskyi said.

Such logistics are more complicated and expensive, he said, while some companies have begun relocating their operations to other areas. Russian attacks, however, have also reached some of the relocated facilities.

The comments come as Russia has increasingly targeted commercial and logistics infrastructure across Ukraine. In recent days, Russian drones have struck warehouses, hypermarkets, postal terminals and shopping centers, including in Kyiv, Kyiv Oblast, Kharkiv and Zaporizhzhia.

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No threat of famine, minister says

Despite the scale of the destruction, Vysotskyi stressed that Ukraine does not face a food shortage severe enough to threaten the population with famine.

The main impact is expected to be on logistics, availability and the range of goods offered in stores. With fewer storage facilities, retailers have less capacity to stock products and must rely more heavily on direct deliveries.

The shift can also increase costs because goods have to move more frequently and over potentially longer routes without the buffer provided by large distribution centers.

Calls for risk-sharing after Russian strikes

Vysotskyi also called for a system to distribute the financial risks when Russian attacks destroy goods somewhere along the supply chain.

He said these losses currently fall within private contractual relationships between businesses, with the state not acting as an operator in the supply chain. In his view, the risks should be shared more fairly between companies involved in supplying and selling products.

He said such a system would not necessarily mean splitting losses equally. Different products have different margins, sales conditions and profitability, so the share of risk should depend on the specific product and terms of cooperation.

Russia’s attacks on storage and distribution infrastructure are therefore creating effects far beyond the facilities themselves. Damage to the supply chain can change what products reach stores, increase the cost of getting them there, and make Ukraine’s retail system more vulnerable to further strikes.

Ravil Dzhamally fled when Russian forces occupied his farm in Kherson Oblast, then returned after liberation to clear mines and plant again. Now, tons of his grain lie unsold in plastic sleeves across his fields because Russian attacks have nearly halted exports through Odesa, Bloomberg reported on 20 August.

Odesa’s Black Sea ports handle almost all of Ukraine’s grain exports, Bloomberg reported. Weekly grain and oilseed exports have fallen by more than 90% since early July, data from commodity-data firm Kpler show. That threatens fall planting and the sector that generates more than half of Ukraine’s export revenue. The disruption is also raising food costs in countries that rely on imported grain, Reuters reported.

Farmers must either store harvests they cannot export or sell locally at about one-third of global prices, Bloomberg reported. They say this year’s crisis is worse than the 2022 blockade because the financial reserves that carried them through six months of disruption then have since been depleted.

Russian attacks drive ships from Ukraine’s grain corridor

Ukraine’s Black Sea grain corridor—the wartime shipping route from Odesa—was never formally closed, Euromaidan Press reported. Four or five ships entered Ukraine’s ports on 21 July. Still, none arrived the next day because shipowners had paused calls, not because Ukraine had restricted navigation, Agriculture Minister Taras Vysotskyi told Ukrainian agricultural outlet Latifundist.

Ukraine’s state railway, Ukrzaliznytsia, subsequently restricted selected wheat and barley shipments to Odesa ports. Its register did not state a reason, and the railway did not publicly link the orders to the shipping disruption.

Oleksandr Havryliuk, who farms near the front in Kharkiv Oblast, told Bloomberg that losing his harvest would probably bankrupt him and force him to sell the farm. The National Bank of Ukraine estimates that Ukraine could lose about $2.5 billion in export revenue during the second half of 2026, Reuters reported. Bloomberg said the disruption could trigger widespread farm bankruptcies.

Ukraine seeks EU aid and export routes as losses mount

Financing was already constrained before the port crisis: available financing and insurance were “enough to keep the sector surviving, not enough to keep it growing,” Vysotskyi told Euromaidan Press in May.

Before Russia’s full-scale invasion, agriculture accounted for more than 10% of Ukraine’s economic output, according to World Bank data cited by Bloomberg.

The sector has since grown more important as Russian attacks have destroyed much of the country’s heavy industry, Evghenia Sleptsova, a senior economist at the economic forecasting firm Oxford Economics, told Bloomberg.

Her firm estimates that the disruption could cost the equivalent of 1.8% of GDP this year and 2.1% in 2027. Under a prolonged severe disruption, the 2027 loss could instead reach 5.3%, Oxford Economics said.

Ukraine could exhaust its grain-storage capacity by early November if exports do not recover, the Agriculture Ministry said, according to Bloomberg. Even using every available route, the country may export only about 30 million tons this season, leaving roughly the same volume stored or rotting, Vysotskyi said.

Ukraine’s Agriculture Ministry requested a €220 million EU grant to subsidize interest and unlock up to €4 billion in loans, the ministry said.

Ukraine and Moldova are also discussing a rail route through Moldova to Romania’s port of Constanța, Reuters reported, citing unnamed sources in both countries. Kyiv estimates the route could carry about 10% of its grain exports.

Western rail corridors have limited capacity, while low water levels restrict traffic through Danube ports. Both alternatives cost more than shipping through the Black Sea, Bloomberg reported.