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Small businesses in Kyiv struggle with rising costs as the war drags on

Street café Kyiv Ukraine
Chebotaeva Ekaterina / Shutterstock.com

Entrepreneurs across Ukraine’s capital are navigating a fragile economy shaped by disruption and uncertainty. As the conflict continues, everyday commerce depends on constant adaptation and resilience.

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Kyiv’s streets look livelier as winter loosens its grip, but the city’s day-to-day economy is still shaped by air-raid alerts, blackouts and price shocks.

For many small firms, the challenge is no longer just staying warm and lit. It is keeping customers, staff and supplies in a war-distorted market.

The Daily Express reports on two business owners a short walk apart who both describe a struggle measured in generators, shrinking margins and stubborn resolve.

Money gets tighter

The wider backdrop is bleak. World Bank and partner assessments have put Ukraine’s recovery and reconstruction needs in the hundreds of billions, while Kyiv directs a large share of national spending toward defence.

External financial support has helped keep the government functioning: the International Monetary Fund approved a multi-billion-dollar assistance programme in 2026, while the European Union has also pledged long-term economic support.

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Inflation has cooled from earlier peaks but continues to squeeze households. Small businesses account for a large share of employment in Ukraine’s cities, making their survival critical to keeping local economies functioning during the war.

Coffee and coping

Inside a modest neighbourhood café, manager Vova told the British newspaper that customers have become cautious, even with small treats.

“Nowadays, everyone is looking to save money,” he said. “Prices keep going up, but salaries remain the same.”

Rather than increase prices, he said the café searched for cheaper suppliers and began buying pastries from people baking at home after losing work.

Running the café now means longer hours and frequent generator checks during electricity cuts caused by attacks on the power grid.

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Repairs and resolve

A few streets away, Oleksandr has kept a mobile phone repair shop running through years split between peace and war, the Daily Express reported.

He says higher import prices for spare parts and weaker consumer demand mean business planning rarely extends beyond the next few weeks.

Residents in his building also combined resources to buy a shared generator so shops and apartments could continue operating during outages.

Despite the uncertainty, he remains defiant. “We are not going to give up – not any time soon.”

Sources: Daily Express,

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