Ukraine businesses face power cuts and uncertainty after Russian attacks

Russian attacks on Ukraine's energy grid have caused repeated power outages that are forcing many firms to rely on backup generators and raising operating costs. A Kyiv School of Economics forecast says these strikes are the most acute short-term risk to GDP.

Russian strikes on the energy system are causing repeated power outages that are disrupting businesses across Ukraine. Owners from bakeries to clothing manufacturers report relying on backup power, facing higher costs and fewer customers. These pressures come after nearly four years of war that have already affected labor, logistics and household spending. Officials and analysts say the energy strikes are a key near-term economic risk. Key facts: - Officials report Russian attacks on the energy grid have produced widespread power cuts affecting businesses nationwide. - Many firms are operating on backup generators or temporary measures, which raises operating costs and has prompted some temporary closures. - A Kyiv School of Economics forecast says strikes on the energy system are the most acute short-term risk to GDP and estimates possible output losses of roughly 1–3 percent depending on how prolonged the failures are. Summary: The outages are increasing costs and reducing production capacity for many Ukrainian firms, with some small businesses unable to operate normally. Analysts say if businesses adapt, output losses could be limited to around 1–2 percent of GDP, but prolonged energy failures could push losses toward 2–3 percent. Undetermined at this time.