One of Ukraine’s largest and most advanced vodka distilleries has been almost completely destroyed in a Russian attack on the southeastern Zaporizhzhia region, dealing another blow to Ukrainian businesses struggling to operate during the war.
The Khortytsa distillery, which produces one of Ukraine’s best-known vodka brands and is a flagship production facility of Ukrainian spirits company Global Spirits, was struck four times on Aug. 27, according to the company. The strikes sparked a large fire that burned for about three hours.
Global Spirits said the plant sustained severe damage that cannot be repaired. Some of its inventory was completely destroyed by the fire, while bottles and other products melted in the intense heat.
The company estimates that between 3 million and 4 million bottles of alcoholic beverages were lost in the blaze. Excise taxes on the products had already been paid to the Ukrainian government, making the financial impact particularly significant.
The distillery, which opened in 2003, has been one of Global Spirits’ most important production sites. The Ukrainian company, which has its headquarters in the United States, also owns a major brandy and cognac production facility in the southern Ukrainian port city of Odesa.
Khortytsa has won numerous awards over the years, and Global Spirits describes the plant as the most technologically advanced distillery in Eastern Europe and one of the largest in the world. According to company figures, the facility has the capacity to produce about 16 bottles a second and employs roughly 500 people.
Global Spirits owner Yevhen Cherniak is considered one of Ukraine’s wealthiest businesspeople.
The threat to the distillery was not new. In 2022, following Russia’s full-scale invasion of Ukraine and amid concerns over Zaporizhzhia’s proximity to the front lines, the company signed an agreement to transfer about half of Khortytsa’s production to the western Ukrainian city of Rivne.
Russian attack on Kyiv, Ukraine
(Photo: EUTERS/Alina Smutko)
The move was intended to reduce the company’s dependence on a production site in a region under threat and allow operations to continue even as the war raged.
The latest attack is one of several blows Global Spirits says it has suffered during the war.
On July 19, the company’s main warehouse was heavily damaged in a Russian attack. At the time, Global Spirits estimated the value of products lost at about 100 million hryvnias, or roughly $2.2 million. The company said other warehouses, offices and production facilities have also been repeatedly damaged during the war.
Despite the destruction, Global Spirits says it continues to employ workers, pay taxes and support the Ukrainian economy. After the July attack, the company said it had not lost its “ability to keep moving forward.”
The destruction of the Khortytsa plant illustrates the heavy economic toll Russia’s war has taken on Ukraine’s private sector. Beyond direct damage to factories and the loss of inventory and infrastructure, companies have been forced to move operations farther from the front while attempting to maintain production, jobs and revenue amid persistent uncertainty.
Ukrainian media have reported that Moscow intensified attacks on Ukrainian businesses over the summer.
Khortytsa vodka also has longstanding ties to the Israeli market. The brand entered Israel in the early 2000s and quickly gained popularity. During that period, the company also invited major Israeli distributors to Ukraine and organized tours of the country for them.