Iran War threatens Ukraine borshch prices

War is driving gas shortages for fryers and raising menu prices for local Ukrainian food. Olena navigates rising costs, blackouts, and energy crises to keep beloved dishes like borshch on the menu.

‘BPSH’ restaurant. Source: The Village.

A pink neon sign displays four letters: “BPSH.” It is a chain that serves affordable food, such as donuts with sweet filling.

Inside, there’s a line of customers, all waiting for their favorite sugar-dusted donuts. But in the kitchen, there’s no sound of oil bubbling in the fryer. Only the vertical grill is working, sizzling loudly as it cooks another crowd favorite — shawarma.

“The fryer uses a lot of power. So when we don’t have electricity, we switch to shawarma — it’s a vertical grill and uses much less energy. Our key items like donuts and belyashi don’t work in those moments,” said Olena Borysova, CEO and owner of the Ukrainian Gastro Family restaurant group, including the BPSH chain.

Olena Borysova, CEO and owner of the Gastro Family restaurant group, including the BPSH chain. Photo provided by Gastro Family restaurant group to The Counteroffensive.

War in Iran has recently triggered global energy disruptions. The regime has restricted shipping through the Strait of Hormuz, leading to supply shortages for things like liquefied petroleum gas. This has driven up the price of LPG, a key fuel used in commercial fryers by many small restaurants and street-food stalls.

Rising LPG costs are already forcing some businesses to rethink their menus and pricing. Small and medium-sized enterprises make up more than 99 percent of all businesses in Ukraine, and around 90 percent worldwide. Disruptions are putting extra pressure on Ukraine’s war‑strained economy, which struggles to survive after a harsh winter.

For customers, prices for borshch have risen by roughly 40-50 percent in U.S. dollar terms, which in hryvnias effectively means they have doubled since 2022. For example, a bowl now costs 169–298 UAH (around $4-8 USD) compared to 80–150 UAH (around $2-4 USD) when the full-scale war broke out.

In the midst of these challenges, local entrepreneurs like Olena had to navigate both rising costs and operational hurdles to keep their businesses thriving.

Once a 17-year-old girl working as a cashier, she transitioned to a role as an accountant, and later, a manager. Today, Olena is the owner of ‘Gastro Family’, which includes 50+ venues across Ukraine and Europe, like the BPSH chain.

This winter was already rough for Ukrainian small businesses due to frequent energy and heat blackouts, which forced additional expenses such as buying generators and heaters.

Around 80 percent of businesses felt the impact of power outages, forcing many to invest in their own energy sources. About 90 percent now have alternative power, including in the form of gas generators, which increases the cost of their products due to the rising prices.

Blackouts have become a major factor in increasing the cost of products and services in businesses like restaurants and cafes, causing prices to rise between ten and thirty percent.

The winter of 2026, especially January–February, was critical for Ukraine’s restaurant sector, particularly in Kyiv, due to blackouts, extreme cold, and economic strain. Many venues were already operating at a loss, and January made business unprofitable.

Up to twenty percent of restaurants in Kyiv were at risk of closing by spring 2026. Many did not shut down permanently but temporarily paused operations, as it was cheaper than closing entirely.

Olena’s restaurants needed to deal with blackout challenges as well. Besides batteries and other equipment, they bought extra LED strips, energy-saving bulbs, and lots of candles.

Prices in Ukraine are already expected to rise up to ten percent due to the war in Iran, driven by higher fuel and fertilizer costs. Vegetables, meat, and dairy products are among the goods likely to become more expensive, though the cost of borshch ingredients alone has already increased by more than 50% since 2022.

These figures reflect only the cost of ingredients: in restaurants, where energy, labor, and logistics costs have also surged during the war, menu prices for borshch have likely followed a similar or even steeper trajectory.

Partially due to Olena’s restaurant’s internal policies, the price of borshch in her restaurants has risen only slightly since 2025.

“We try to keep menu prices stable or adjust them as gently as possible,” said Maryna Lavrenchuk, communication manager of the Gastro Family restaurant group.

And the crisis seems to be becoming global, hurting people’s wallets worldwide. In India, restaurants are also facing a fryer crisis. The restaurant association advised its 500,000 members to reduce working hours and remove dishes that require long deep frying. Up to one-fifth of hotels have already stopped operating.

The LPG crisis is not the only challenge Ukrainian local restaurants face. It also escalates to supply chain disruptions, which are an even bigger problem for the consumer’s dining experience.

“We haven’t changed anything in the guest experience…We don’t sleep at night, and when I pay money, I want to get the same service and product as before the war. You want to feel some comfort, like a flashback to life before the war,” said Olena.

Olena tries to make sure guests are satisfied despite the rising prices by preserving the most popular dishes. Even though some prices have changed, everyone’s favorite borshch is still on the menu, which is a traditional Ukrainian first course.

It is based on beetroot, which gives it a deep red color. It’s usually cooked with meat broth, cabbage, potatoes, beans, and spices.

Serving borshch at the ‘Ostannya Barykada’ restaurant. Photo provided by Maryna Lavrenchuk, communication manager of the Gastro Family restaurant group.

“Borshch is the number one dish ordered by Ukrainians, foreigners, and visitors to Ukraine. It ranks first in sales,” said Olena.

And it doesn’t change despite the price spike. The phenomenon of Ukrainian borshch is not only about its taste, but also its deep cultural and social meaning. It is a symbol of identity, passed down through generations, and a sign of unity and hospitality, bringing people, families, and communities together.

“Today, guests visit restaurants less often—both because of the shelling and falling purchasing power—but they still expect high-quality food and service,”said Maryna.

Maryna Lavrenchuk, communication manager of the ‘Gastro Family’ restaurant group. Photo provided by Maryna.

Guests at Olena’s restaurants might sigh and mention the price increases to the waiter. Olena’s team understands that prices are rising, but wages are not, so guests are visiting the restaurants less often. They might skip dessert, but they still order two main dishes, including borshch.

Despite mounting challenges, Ukrainian businesses have learned how to adapt in times of crisis. One of the chain’s restaurants, an old wood-fired oven remains in use, capable of cooking nearly the entire menu, even during blackouts.

“History shows that everything is cyclical. So now, together with the team, we are preparing for post-war times — maybe in about ten years, that’s how we see it. We don’t know exactly how it will be, but we are getting ready,” said Olena.

NEWS OF THE DAY:

By Oksana Stepura

Good morning to readers; Kyiv remains in Ukrainian hands.

UKRAINIAN COUNTEROFFENSIVE ADVANCES AFTER STARLINK CUTOFF: Ukrainian forces made their biggest territorial gains in over two years after Russian forces lost access to Starlink, which had been crucial for battlefield communication and drone coordination, The Wall Street Journal reported. These disrupted communications helped Ukrainian forces reclaim about 150 square miles in southern regions.

HUNGARY’S FM BRIEFED RUSSIA ON EU MEETINGS: Hungary’s FM Szijjártó has allegedly been sharing details of EU meetings with Russia’s FM Lavrov, giving Moscow insight into internal EU discussions, The Washington post reported. It also reported that Russian hackers penetrated Hungary’s Foreign Ministry networks. Additionally, intelligence reports suggest Russian secret services may have considered staging an assassination attempt on Orbán to boost his party’s falling popularity.

SLOVAKIA MAY VETO EU LOAN FOR UKRAINE: Slovak Prime Minister Fico has expressed support for Orban’s blockade of the EU’s €90 billion loan for Ukraine, suggesting Slovakia may join the veto if Russian oil supplies via the Druzhba pipeline remain disrupted, Ukrainska Pravda reported. He also refused to visit Ukraine for a meeting with Zelenskyy, citing personal safety concerns.

DOG OF WAR:

Oksana met this cute pup at a pizza place in Kharkiv.

Stay safe out there.

Best,
Anastasiia