Air raid alerts cost Ukraine $45 million for every hour businesses halt, economy minister says
Air raid alerts cost Ukraine an estimated $45 million for every hour they force businesses to stop operating, Economy and Environment Minister Oleksandr Kravchenko told The Guardian, as intensifying Russian attacks put growing pressure on the country's economy.
Some air raid sirens can last up to 10 hours a day, forcing workers into shelters and bringing large parts of the economy to a standstill.
“If people are in a bunker, business stops,” Kravchenko said. To reduce the economic impact, Ukraine recently introduced a two-tier warning system.
A red alert signals a missile threat and requires people to seek shelter, while a yellow warning for drone threats allows many businesses to continue operating.
More than half of businesses remain open during yellow alerts, according to Kravchenko.
The system involves a difficult trade-off between safety and keeping the economy running.
On Sept. 28, a Russian jet-powered drone struck the National Academy of Sciences in central Kyiv during a yellow alert, killing two people while staff were working inside.
Kravchenko said Russian attacks on steel plants, warehouses, logistics infrastructure and data centers have caused an estimated $10 billion in damage to fixed assets this year.
“What we had not fully anticipated was how quickly Russia would develop these jet-powered drones and use them to target everything,” he said.
The government is also considering allowing more private companies to purchase Ukrainian air defense systems, although Kravchenko said businesses would never be able to fully protect themselves from Russian missiles and drones.