Russian strikes shut a major Ukrainian steel plant and slow grain exports
Ukraine's central bank forecasts the economy will shrink 0.4% in 2026, and a lawmaker says the government faces its worst cash squeeze since 2022.
Russia's air campaign is hurting Ukraine's steel and grain sectors and its public finances. The strikes come almost daily, using ballistic missiles and drones powered by jet engines. They hit industrial and energy plants as well as railways and export routes.
Kamet Steel, a complex in the city of Kamianske, closed after five ballistic missiles struck it on Sept. 5. In 2025 it produced over a quarter of the country's steel. Missile attacks have also brought steel output to a stop throughout Metinvest Group, a mining and metals company.
Attacks on ports and ships have sharply cut Black Sea trade. Maritime analytics firm Lloyd's List Intelligence counted just 21 ship arrivals in August, about 90% fewer than a year before. Ports on the Danube river offer a costlier alternative.
Ukraine's central bank forecasts a 0.4% economic contraction for 2026 and has raised its forecast. Roksolana Pidlasa, head of parliament's budget committee, says the country faces its worst cash squeeze since Russia's 2022 invasion. The funding gap for 2026 is just under $25 billion.
Significant US aid has not been authorized since Donald Trump returned to the presidency.
- 0.4% economic contraction forecast by Ukraine's central bank for 2026 — The Boston Globe
- 12.5% central bank's raised inflation forecast, from 10% in July — The Boston Globe
- 21 ship arrivals at Black Sea ports in August, per Lloyd's List Intelligence — The Boston Globe
- just under $25 billion Ukraine's funding gap for 2026 — The Boston Globe
- about $32.6 billion expected funding gap for 2027 — The Boston Globe
Three sides of the story
Liberal2 outlets
Strikes strangling Ukraine's industry, exports and budget
The Boston Globe runs the Associated Press report under the headline "Russian strikes choke Ukraine's economy as steel shuts down and grain exports stall." It opens at the shuttered Kamet Steel complex in Kamianske. The report describes an air campaign that is "slowly strangling" the economy and deepening the government's cash crunch.
It quotes Kamet Steel CEO Oleksandr Tretyakov, who calls the situation "the worst situation since the Second World War," and Nibulon's Volodymyr Scavinskyi on costlier Danube shipping. Farmers' troubles come through HarvEast's Olena Shelest, who describes corn prices near $130 a ton. Budget committee head Roksolana Pidlasa has the last word.
She says that if Ukraine finds no way to cover next year's deficit, it will be unable to pay teachers' and doctors' salaries and unable to maintain hospitals. The report also sets out the loss of US budget support and Europe's larger share of aid.
Center1 outlet
Air war's toll on steel, grain and finances
The Seattle Times carries the same Associated Press wire report, headlined "Russian strikes choke Ukraine's economy as steel shuts down and grain exports stall." It opens with the closed Kamet Steel complex, then turns to grain piling up in fields and silos. The text lays out the central bank's 0.4% contraction forecast and 12.5% inflation forecast, and cites Torbjörn Becker of the Stockholm Institute of Transition Economics on defense spending of some 40% of .
Kamet Steel's Tretyakov, Nibulon's Scavinskyi and HarvEast's Shelest describe lost steel output, costly river routes and falling corn prices. Parliament's budget committee head Roksolana Pidlasa describes the worst cash squeeze since 2022, and the report cites the Kiel Institute on European and US aid totals.
Conservative0 outlets
Outlets on this side gave the story little coverage.
Which side made the stronger case?
Nibulon's Volodymyr Scavinskyi says shipping a ton of corn from central Ukraine to Spain can now cost up to $150. He puts the cost at up to $50 earlier in 2026. Budget committee head Roksolana Pidlasa says that if next year's deficit stays uncovered, the state could not pay salaries of teachers and doctors or keep hospitals running.
All sources: 3 articles from 3 outlets
Liberal (2)
- ABC News: Russian strikes choke Ukraine’s economy as steel shuts down and grain exports stall
- The Boston Globe: Russian strikes choke Ukraine’s economy as steel shuts down and grain exports stall
Center (1)
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