No Compensation: After Losing a $70 Million Warehouse, Rozetka Turned to the Government with a Single Request
12 August 09:53
The destruction of Rozetka’s largest distribution center in Brovary cost the company at least $70 million, not including goods worth billions of hryvnias. Rozetka co-founder Iryna Chechotkina spoke about the scale of the losses during a meeting between business representatives and the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, according to Interfax-Ukraine, as reported by "Komersant Ukrainian"
The value of Rozetka’s distribution center in Brovary, which was completely destroyed as a result of a Russian attack on the night of August 5, was $70 million.
However, this figure refers only to the logistics facility itself. The warehouse also held goods worth billions of hryvnias.
According to the businesswoman, the figure in question is specifically $70 million, not hryvnias. The company’s final losses could be significantly higher, as the cost of the building must be added to the value of the destroyed equipment, automated systems, and inventory.
What Rozetka Is Asking of the Government
Despite the scale of the losses, the company is not currently demanding that the government immediately compensate the full cost of the destroyed center.
Iryna Chechotkina proposed allowing companies affected by Russian attacks to defer their tax payments. This would enable businesses to temporarily preserve their working capital and redirect it toward resuming operations.
“All I can ask for right now is the option to defer taxes so that we can recover,” said Rozetka’s co-founder.
According to her, without assistance, companies that have suffered such extensive damage may not have sufficient resources for a swift recovery.
A tax deferral does not mean that taxes are automatically written off. It involves postponing payment deadlines so that affected businesses have time to restore their infrastructure, purchase equipment, and return to normal operations.
At the same time, no specific government decision regarding a tax deferral for Rozetka or other targeted companies had been announced at the time this information was published.
Why the warehouse was not fully insured
Iryna Chechotkina cited the lack of affordable insurance for assets of this scale as one of the main problems.
According to her, insurance companies are currently unwilling to assume the risks associated with the potential destruction of large logistics facilities as a result of missile and drone strikes.
In the context of a full-scale war, insurers may:
- exclude war risks from standard policies;
- set limits on the maximum payout amount;
- demand an excessively high insurance premium;
- exclude missile strikes and combat operations from the list of insured events;
- agree to insure only a portion of the property.
As a result, even large companies may be left without adequate protection against losses amounting to tens or hundreds of millions of dollars.
Rozetka’s statement raises a broader question: who should cover the losses of Ukraine’s systemic businesses if private insurance is unable to provide the necessary level of protection and there is no state mechanism for full compensation?
What Was at Rozetka’s Destroyed Warehouse
The distribution center in Brovary opened in early 2017. It was the company’s largest and one of its most automated logistics facilities.
The center handled:
- receiving goods from suppliers;
- product storage;
- order fulfillment;
- sorting of shipments;
- transfer of packages to carriers;
- delivering goods to Rozetka pickup points.
Before it was destroyed, the facility processed over 100,000 orders per day. Therefore, the loss of the facility is significant not only as the physical destruction of real estate but also as a blow to the company’s main logistics chain.
Rozetka’s co-founder reported that the center cannot be restored following the attack. This means that restoring previous capacity may require building a new facility, purchasing equipment, and reconfiguring automated processes.
The warehouse has been attacked several times
This is not the first time the distribution center in Brovary has been targeted by Russian strikes.
Iryna Chechotkina reported that on August 2, the facility was attacked by two strike drones. No casualties were reported at that time.
On the night of August 4, the logistics complex was struck again. According to Rozetka’s co-founder, this time the facility was hit by three ballistic missiles.
After the attack, Chechotkina wrote on her Facebook page that she watched as her life’s work went up in flames. The company was set to celebrate its 21st anniversary on the day of the strike.
Rozetka is one of Ukraine’s largest e-commerce companies, founded in 2005 in Kyiv by Vladislav and Irina Chechotkin. In 2015, the investment fund Horizon Capital became a co-owner. The company has over 540 stores in more than 165 cities across Ukraine and employs more than 5,000 people.
The Rozetka-Evo marketplace group achieved a turnover of 112.4 billion UAH in 2025, which is 9% more than the previous year. Over the course of the year, the company launched about 100 new-format pickup points and reached 350,000 Smart subscription users.
Despite the destruction of its main distribution center, the co-founder assured that Rozetka continues to operate.
Russia attacked more than just Rozetka
On the night of August 4, Russia launched a massive strike against the logistics and commercial infrastructure of Kyiv and the Kyiv region.
In addition to Rozetka, the following facilities sustained damage or destruction:
- “Epicenter”;
- “Nova Poshta”;
- “Silpo”;
- Novus;
- other Ukrainian companies.
Following the attack, major retailers and logistics operators began discussing possible mechanisms with the government to protect critical supply chains.
Among the potential solutions, businesses cite the creation of a special fund, the development of a network of smaller distribution centers, the use of overseas warehouses, state-backed insurance against war risks, and tax breaks for affected companies.
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