Russia Targets Ukraine's Economy with Missile and Drone Strikes

Russia is escalating its war against Ukraine by targeting the country's economy, striking steel plants, shopping centers, and factories with missiles and drones. Ukrainian President Volodymyr Zelenskyy says Russia aims to destroy the economy to break resistance, with damages estimated at $10 billion this year. The attacks have devastated key sectors, including steel production, agriculture exports, and logistics. Twelve German companies reported direct damages of €35.6 million, though many more cases likely go unreported. The economic pressure threatens Ukraine's tax revenues and state budget, which faces a deficit of up to €23 billion by end of 2026. Economists do not predict a total collapse if foreign support continues, but growth is expected to stall at zero in 2026. The outcome depends on Ukraine developing better defenses against Russian jet drones, which are currently giving Moscow a military advantage.