Government approves procedure for compensation to businesses for destroyed property and war risk insurance

On 28 November 2025, by Resolution No. 1541, the Cabinet of Ministers of Ukraine approved the Procedure for Granting Partial Compensation for the Value of Property of Business Entities Destroyed or Damaged as a Result of the Armed Aggression of the russian federation, as well as Partial Compensation of Insurance Premiums under War Risk Insurance Contracts (the "Procedure").
The Procedure entered into force on 29 November 2025 and applies as of 1 January 2026.

Under the Procedure, businesses may receive two types of compensation:

1. Compensation for Property of Business Entities Destroyed or Damaged as a Result of the Armed Aggression of the russian federation

Compensation is available for property damaged or destroyed as a result of missile strikes, unmanned aerial vehicles, artillery shells and/or their fragments, air defense and missile defense systems, as well as fires, explosions or blast waves.

Compensation is granted only for property located in high-risk areas, namely the Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv regions, excluding territories temporarily occupied by the russian federation.

For a single business entity (together with its affiliated parties), the maximum amount of compensation for damaged or destroyed property is UAH 10 million, but not more than the actual losses’ amount. If the business entity has already received compensation or financial assistance from the state or local budgets, the amount of compensation payable under the Procedure is reduced accordingly.

The receipt of compensation for damaged or destroyed property is voluntary and subject to a fee, in the form of a contribution equal to 0.5% of the total estimated amount of potential losses in respect of the damaged or destroyed property.

2. Compensation of Insurance Premiums under War Risk Insurance Contracts

The Procedure also regulates the possibility of partial compensation of insurance premiums paid under war risk insurance contracts.

We note that an insurance premium (insurance payment or contribution) is the fee payable by the insured (the business entity) to the insurer (the provider of insurance services) under the terms of a property war risk insurance contract (the "Insurance Contract").

Unlike property damage compensation, compensation of insurance premiums is not tied to a specific territory of Ukraine. Compensation will be available under Insurance Contracts covering territories where insurers provide war risk insurance services to business entities.

For a single business entity (together with its affiliated parties), the aggregate maximum amount of insurance premium compensation is UAH 1 million. The compensation is calculated so that the uncovered portion of the insurance tariff for business entities equals 1%.

The procedure for obtaining compensation of insurance premiums is voluntary and fee-based, requiring a one-time payment of a fixed contribution of UAH 5,000 for each application submitted. Compensation of the insurance premium is paid after the expiration of the insurance contract term.

Any business entity is eligible to apply for compensation, except for legal entities operating in the state-owned and municipal sectors of the economy.

To obtain compensation, an application must be submitted to PJSC “Export Credit Agency”. Upon successful receipt of compensation, the business entity assigns to the State its right of claim against the russian federation for compensation of the damage caused.