Russian strikes destroy 90% of Ukraine’s modern food storage, minister says

Russian attacks have destroyed around 90% of Ukraine’s modern storage facilities for goods, significantly disrupting the logistics infrastructure used by the country’s retail sector, Ukraine’s Minister of Agrarian Policy and Food Taras Vysotskyi said.

Speaking at a press conference on August 28, Vysotskyi said the damage to warehouse infrastructure had not created an immediate threat to the country’s food supply, Ukrainska Pravda reports.

“Ninety per cent have been destroyed. But that doesn't mean Ukrainians will be left without food. There is no threat of famine,” he said.

Vysotskyi warned, however, that continued attacks on logistics facilities could affect the range of products available in stores.

He said retail logistics were being reconfigured in response to the repeated destruction of warehouses. The most realistic alternative, he said, was a “just-in-time” supply model, although it was more complicated and costly.

Some businesses have begun relocating operations to alternative sites, but Vysotskyi said Russian attacks were already being recorded at some of those new locations.

The minister also backed a system under which the risks associated with goods destroyed in Russian attacks would be shared more evenly among participants in the supply chain. He stressed that the state is not a party to the commercial and contractual relationships involved.

“When it comes to the supply and sale of goods, we currently have no state operator in this chain. These are purely commercial and contractual relations between the parties involved.

“Nonetheless, from our point of view, an equal distribution of risk would be fair.”

Vysotskyi said compensation mechanisms should not necessarily require losses to be divided equally, as products differ in terms of markups, sales conditions and profitability.

“It would be fair for the distribution of risk on goods to be set out depending on the final economic impact. It can't be 100% on one side. But it should be done on a case-by-case basis, depending on the product category and the terms of cooperation.”

The disruption has already caused casualties and repeated damage to major retail distribution networks. On August 4–5, Russian strikes damaged or destroyed four Fozzy Group distribution centres supplying the Silpo, Fora and Thrash! supermarket chains, killing six employees.

On August 27, a warehouse belonging to the Kolo grocery chain was damaged in a Russian attack. The same day, another Russian strike damaged a warehouse in Kyiv region used by Fora, which had begun operating at the site only four days earlier.

Earlier, on August 20, a separate Russian attack damaged another Fora warehouse in Martusivka, Kyiv region, where fresh produce was stored. The facility had been operational for just one week.

By Vafa Guliyeva