Ukraine businesses struggle as Russian attacks cause power outages

Repeated Russian strikes on Ukraine's energy grid have forced many firms to rely on backup power and raised operating costs, and analysts say attacks on the energy system are a key short-term risk to GDP.

Russian strikes on Ukraine's energy system have led to repeated power outages, disrupting daily business activity in Kyiv and other areas. Local firms report relying on backup power and facing higher operating costs while customer numbers and staffing have fallen. Analysts at the Kyiv School of Economics identify attacks on the energy system as the most acute short-term risk to the country's economic output. Key facts: - Reporting indicates Russian attacks on Ukraine's energy grid have caused frequent blackouts affecting businesses. - Businesses are operating with backup power and facing increased costs and reduced customer demand. - The Kyiv School of Economics warns energy strikes are a principal short-term risk to GDP, with potential output losses depending on the duration of outages. Summary: The strikes have disrupted operations and raised expenses for a wide range of small and medium enterprises, contributing to lower sales and staffing challenges. The extent of broader economic damage will depend on whether the energy-sector attacks and outages continue. Undetermined at this time.