Ukraine Economic Situation

I’ve several post here implying the collapse of Russia is nigh.
What is the situation in Ukraine.
Ukraine has benefited from $200 billion infusion from the West since 2022.

https://voxukraine.org/en/war-european-integration-and-workforce-scarcity-what-changes-does-ukraine-s-labor-market-need-in-2026-key-takeaways-from-a-roundtable

Ukraine’s labor market in 2026 is facing pressure from several overlapping systemic crises. The unemployment rate stands at 11.3% — nearly twice the EU average of 5.9% — while 75% of enterprises report labor shortages. More than 5.9 million Ukrainians are currently abroad, a significant share of men are engaged in the country’s defense, and 46.5% of the population remains economically inactive.

Population aging is reducing the country’s labor potential, mobilization has drawn a significant share of men out of the labor market, and the professional skills of those willing to work often do not match employers’ needs.

The most acute labor shortages are in skilled blue-collar occupations, including welders, carpenters, sewists, drivers, electrical technicians, maintenance fitters, and CNC machine operators, as well as physicians across a range of specialties (particularly family physicians, internists, and pediatricians) and workers in the retail and restaurant sectors.

Ukraine’s economy is enduring its toughest period since the early months of Russia’s invasion after sustained air strikes left its power system in tatters as the war enters a fifth year, forcing firms to cut output and shrinking state revenues.

From steel mills to miners, cement makers and food producers, Ukrainian industry is being forced to cut output and absorb ‌rising costs as it struggles to shift work schedules and save equipment from emergency shutdowns, executives at eight companies said.

In February, the monthly business activity recovery index of the Institute for Economic Research in Kyiv – which compares the number of companies reporting that business is worse or better than last year - turned negative for the first time since 2023.

A jump in the level of Ukraine’s debt ‌to almost 100% of gross domestic product – despite two restructurings - has unsettled some investors.

https://www.firstpost.com/explainers/russian-strikes-expose-ukraine-air-defence-shortage-patriot-missiles-nato-summit-explained-14029508.html
Russia’s overnight barrage on Monday has once again spotlighted a challenge that Kyiv has repeatedly warned its Western partners about for months which is its dwindling supply of advanced air-defence interceptors, especially to defend against ballistic missile strikes.

According to Ukrainian military data, Russia launched one of its largest combined aerial attacks, employing hundreds of drones alongside dozens of missiles against Kyiv and surrounding regions.

Ukrainian air-defence units successfully intercepted more than 90 per cent of the 351 drones involved in the assault and also destroyed 37 additional missiles during the operation.

However, the picture looked dramatically different when it came to ballistic weapons. Ukraine’s military reported that it failed to shoot down any of the ballistic missiles launched during the attack.

The United States cannot send any defense missiles. It has a shortage. What few they have are utilized in the Iran War.

https://businessmirror.com.ph/2025/10/01/ukraine-at-the-breaking-point-war-fatigue-corruption-and-europes-risk-of-collapse/

There is a growing sense of foreboding over the continuation of the war in Ukraine as President Volodymyr Zelenskyy faces mounting backlash at home. Questions are being raised about the flow of Western aid and the specter of corruption in its use, even as reports of desertion at the front undermine Ukraine’s military readiness.

Zelenskyy’s push for more Western assistance is colliding with a Europe weary of the war’s economic costs. Belgium, Greece, Spain, France, Italy, and Poland—all carrying public debt near 90 percent of GDP—are seeing growing domestic discontent. Economists warn that further aid and expanded anti-Russian sanctions risk tipping these fragile economies closer to financial crisis, potentially pushing debt levels above 100 percent of GDP if the conflict drags on.

Western efforts to cripple Russia’s economy have largely failed. NATO Secretary-General Mark Rutte, in an interview with The New York Times, admitted grimly: “Russia is now producing three times as much ammunition in three months as NATO does in a year.” This imbalance underscores Ukraine’s mounting challenges—from dwindling resources to declining morale.

Reports indicate widespread failure of mobilization efforts and critical shortages of personnel. Independent experts estimate that since the start of the conflict, more than 260,000 Ukrainian soldiers have abandoned their posts.

Ukraine’s economic crisis is equally dire. The country faces what analysts describe as “complete bankruptcy,” compounded by a mass population exodus, including conscription-age men. Recent reporting by The Financial Times revealed Ukraine lost nearly $770 million to corruption and failed arms procurement deals—funds that were paid to intermediaries for weapons and ammunition that never arrived.

Across Europe, popular support for the war is eroding. Citizens, already burdened by inflation and illegal migration concerns, are questioning why billions are sent to Kyiv while domestic needs go unmet—especially when allegations of theft by Ukrainian officials surface regularly.

My view of these war is 2 punch drunk pugilists barely hanging in the fight.
The Western support is critical for the Ukraine economy. Without it, Ukraine is finished.

And after the war?

Who will pay for this rebuilding?

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On January 14, 2026, Mykhailo Fedorov was appointed Ukraine’s minister of defense.

*Just six months later, he was dismissed. *

One of Fedorov’s principal tasks, bigger even than addressing the shortage of Patriot interceptors, had been reforming his country’s recruitment and mobilization system. But manpower shortages remain a chronic issue, forcing the government to resort to unpopular solutions like “busification” (the Ukrainian term for the seizure of draft-age men by mobile patrols). Harsh measures like these led to large protests in the city of Lviv earlier this month, and are a flashpoint in Ukrainian society.

The facts, however, do not bear this out. Successful Ukrainian drone strikes deep into Russia are indeed causing problems for Moscow, but they are not changing the calculus where it counts: the battlefront of eastern Ukraine. While Zelensky distracts public opinion with footage of drone strikes on refineries, Russian troops continue a grinding offensive in the Donbas. Though local conditions vary, in the aggregate Ukraine is consistently losing more territory than it is retaking (Russia has not suffered a monthly net loss of territory since the fall of 2023). The prospect of Russia eventually achieving control of the Donbas—one of its central war aims—remains eminently thinkable.

(It should also be noted that, as Ukraine’s former commander-in-chief noted recently, “Russia retains the ability to strike back with equal or greater force;” Putin’s retaliation, which includes the use of ballistic and hypersonic missiles, tends to inflict greater damage than Ukraine’s own strikes into Russia.)

But. But. What I have been reading in the West’s Main Street Media is that Russia’s collapse is imminent!

Was this written by the Ministry of Truth? According to their linked source, Russia has had a net loss of territory for three straight months.

I realize the American Conservative is disappointed their role model’s war isn’t going as they hoped, but they need to make their lies sort of believable. Step it up!

I hadn’t heard that. Do you have a link?

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Two increasingly hurt and nearing exhaustion boxers, one bigger but aged and the other much smaller and suffering more from disabling injuries early in the fight, but still furiously energized by rage.

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Divitias brings those stories to the board.

do a web search
Here’s 2

Russia on the brink as Kremlin faces ‘severe economic collapse’ in just weeks

That one is 8 months old.

What we hear regarding the Ukraine borders on propaganda IMO.

Territory gain and loss is small. What is important is the attrition. And Ukraine is having manpower problems due to its smaller population. And Russia still is able to inflict more damage on Ukraine Infrastructure via larger drone, ballistic & hypersonic missile attacks.

And how long will NATO continue to buy US weapons to give to Ukraine? And there is a dearth of defense missiles for Ukraine. They are reserved for Israel & neighboring Arab states with US bases.

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Key Strategic Industrial Targets Hit by Ukraine

  • Sverdlov Explosives and Ammunition Plant: In a major operation, Ukraine targeted the Ya. M. Sverdlov Plant in Dzerzhinsk. This facility is highly strategic because it is Russia’s primary producer of specialized military high explosives (like RDX and HMX) and heavily manufactures aviation bombs (including FAB glide bombs) and artillery ordnance. [1, 2, 4, 5]
  • Kirov Missile Plant (Almaz-Antei): Ukrainian long-range weapons severely damaged a high-value defense factory in Kirov. This facility manufactures critical components for Russian air defense missiles, aircraft, and tactical missile systems like the Iskander launcher. [3, 6, 7]
  • Voronezh Electronics & Semiconductor Plant: A precision cruise missile strike targeted this major silicon foundry, which manufactures microelectronics vital to Russia’s high-precision weapons. [7, 8]
  • Bryansk Chemical Plant: Ukraine’s General Staff confirmed successful strikes against this facility, which is directly tied to the production of high explosives for the Russian military. [2]

Rather than focusing on “marking” factories, Ukraine’s current long-range strike strategy focuses heavily on crippling Russia’s deep-tier military logistics, energy centers, and electronics plants to restrict the production of high-precision weapons. [9, 10, 11]

[1] https://www.latimes.com

[2] https://www.ukrinform.net

[3] https://www.youtube.com

[4] https://www.reuters.com

[5] https://www.reuters.com

[6] https://www.bbc.com

[7] https://www.instagram.com

[8] https://www.themoscowtimes.com

[9] https://www.youtube.com

[10] https://www.facebook.com

[11] https://www.instagram.com

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Ukraine on Saturday launched an attack on an Iranian commercial vessel in the Caspian Sea. The Islamic Republic has threatened retaliation over the strike.

It seems the president now has 2 noncompliant allies.

Oh, both are compliant.

The US press maintains its opposition to reality.

Russia - through the roughly $300 billion in seized assets. It won’t cover all of it but it will be a good start.

via claude

Modestly, yes — with caveats on where “the East” means.

For the first time in almost three years, Ukraine began regaining territory in early 2026 — Zelenskyy claimed 460 sq km, while ISW put it at a more modest 257 sq km. The gains were strongest in Dnipropetrovsk, where Russian presence was reduced to just three towns. Russia had net territorial losses in both April and May — roughly 400 sq km, its first monthly net losses since August 2024.

But the picture is mixed in Donetsk proper: Russian gains in Zaporizhzhia and Dnipropetrovsk have ground to a halt, but Russia has made concerning gains around occupied Siversk in Donetsk Oblast, and Russia has concentrated its 2026 offensive on the “fortress belt” of fortified cities anchoring Donetsk’s defense.

Current state: Russia’s spring-summer 2026 offensive has failed to make operationally significant gains — about 38 sq km in all of July (smaller than Manhattan) at the highest casualty rate of the year.

So: Ukraine gained net ground in the spring, mostly on the Dnipropetrovsk/Zaporizhzhia axis; the Donetsk fortress belt is still contested with Russia inching forward at heavy cost.

For those casually observing the war in Ukraine, the failure of Kyiv’s recent strikes on Russian territory to impact the battlefield might be disappointing, even inexplicable. For those who have paid close attention to the war, it is just the latest demonstration that there is no feasible military solution to the conflict.

Earlier this summer, Ukrainian President Volodymyr Zelensky announced a 40-day campaign of deep strikes in Russia, with the stated goal of pressuring Russian leadership to end the war. Mainstream media wrote triumphantly about the pain Ukraine was inflicting with its U.S.-assisted drone attacks inside Russia, claiming that Ukraine was “now turning the tide,” had a “decisive upper hand,” and was even “winning the war.”

But detailed analyses of the actual battle lines showed that, when the 40-day clock expired earlier this month, little had actually changed on the ground. In fact, Russia had made some minor territorial advances, while Ukraine’s severe manpower, demographic and economic crises continued to deepen.

Worse, the drone attacks have elicited the most severe Russian retaliation yet. Moscow has markedly stepped up its strikes on Ukraine, including one of the largest ballistic missile attacks of the entire war, at the precise time the United States and Europe are running low on interceptors to defend it. With Russia now attacking Ukraine’s port facilities and commercial vessels in the Black Sea, the country is being starved of billions of dollars of revenue, and its GDP could drop by as much as 1.5%.

In other words, the ultimately unsuccessful Ukrainian drone assault is something we have now seen over and over again: Kyiv embarks on an audacious, headline-grabbing military gambit; Western media and officials seize on it to claim the tide is turning; and then when the smoke clears, it turns out nothing has been achieved but an escalation of the war. Ukraine winds up battered even worse, and with less favorable negotiating terms on the table.

Also Ukraine lack of air defense missiles means Ukraine’s air defense has collapsed. Meaning more success of Russian drone & missile attacks upon Ukraine infrastructure.

Was this written by Putin’s son-in-law?

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