Russia has destroyed 90% of Ukraine’s modern storage capacity. Retail logistics are being reshaped

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.