Can a business receive compensation for lost assets?

Since the full-scale invasion of the Russian Federation into Ukraine, thousands of businesses have suffered from military actions: production facilities, warehouses, offices have been destroyed, and equipment and documentation lost. Some business owners lost everything, others are trying to recover operations.

According to 2022 results alone, at least 109 large and medium-sized enterprises suffered direct losses as a result of the full-scale invasion launched by Russia on February 24, 2022. This is based on assessments by the “Russia Will Pay” project by KSE Institute (an analytical center at the Kyiv School of Economics).

The total amount of direct losses incurred by enterprises, including state-owned and private entrepreneurs, is estimated at $13 billion. Of this, $9 billion is the share of losses from large and medium-sized businesses. Indirect losses amount to $33.1 billion. The required amount to restore enterprises is $24.9 billion.

Many businesses are actively pursuing judicial pathways. Analysts found at least 1,482 court rulings in the registry related to compensation claims against the Russian Federation:

52 such rulings were issued in 2022; by 2024 the number grew to 812; and since the beginning of 2025, 213 rulings have already been made.

When it comes to the reality of receiving compensation for a lost business, we must understand: this is a complex and lengthy process. However, Ukraine, together with international partners, is steadily and persistently working in this direction. A concept of a Compensation Commission is currently under discussion — an administrative body authorized to review claims for damage caused by internationally wrongful acts of the Russian Federation in or against Ukraine.

It is clear that an adequate and up-to-date assessment of business losses is only possible if damages are properly and reliably documented by the business itself.

And this is a path only the business itself can take. The process begins with several essential steps:

STEP 1. Initial documentation of damage

Golden rule: only damages that are properly recorded, verified, and documented will have legal significance.

Only “white” businesses (with official registration, accounting, and tax payments) have real chances for compensation — both from the state and international partners.

What to document:

• Damaged or destroyed real estate (buildings, warehouses, workshops)

• Equipment, machinery, furniture

• Inventory, goods, documentation

• Vehicles, logistics assets

How to document:

• Photo and video with clear timestamps and location data

• Testimonies from employees, neighbors, security

• Drone footage, security camera recordings

• Police/State Emergency Service/military administration reports

• Inspection protocols (preferably with police participation)

Proper documentation within the first 72 hours is crucial for favorable outcomes in court or compensation programs.

STEP 2. Submitting an official statement

Where to go:

• National Police — to register a criminal case (destruction = war crime)

• Local Regional Military Administration (RMA) or Civil-Military Administration — to record consequences

• Prosecutor’s Office — to document the crime (Art. 438 of the Criminal Code of Ukraine)

How to submit:

• Statement in free form (in writing or by email)

• Add photos, videos, asset descriptions, documents

• Indicate the date, coordinates, circumstances

Deadlines:

Although the law does not define a statute of limitations for such cases, it is recommended to file within 5–7 days of the incident — to preserve evidence and establish facts.

STEP 3. Collecting and preserving evidence

What you need:

• Ownership documents (Real Estate Registry extract, lease agreements)

• Inventory descriptions

• Accounting reports, reevaluation acts, photos

• Documents showing the value of equipment and goods

• Data on stock at the time of the attack (warehouse records, 1C, etc.)

Risk: if equipment or goods were not recorded in accounting — they legally “do not exist,” and cannot be compensated.

STEP 4. Submitting a compensation/support application

Possible channels:

State programs:

• via the Diia app (real estate compensation)
  https://diia.gov.ua/services/categories/gromadyanam/reparatsii-mizhnarodnyi-reiestr-zbytkiv

• Ministry of Economy / Recovery Fund / Prozorro Recovery

• Local RMAs — pilot support programs

International funds:

• USAID, GIZ, UNDP, U-LEAD

• Grant programs for SMEs, farmers, manufacturers

• Business relocation programs

Required documents:

• Application

• Photo/video evidence

• Damage report

• Proof of ownership

• Loss assessment (expert report)

Here is just a partial list of the information you’ll need to compile for loss assessment:

• Business identification

• Registration number in the Unified State Register

• Date of registration

• Registration location

• Current status (not liquidated/in liquidation)

• Registered address

• Actual business address

• Phone number(s)

• Email address(es)

• Type of business activity

• Detailed business activity description

• Type of event that caused the loss

• Date of the loss-causing event

• Date of business recovery (if applicable)

• Proof of business loss

• Detailed loss description

• Approximate claim amount

• Breakdown of the claim amount

• Proof of income and other financial statements for years prior to the loss

• Information about related legal cases or law enforcement investigations (if applicable)

This publication was prepared with the support of the law firm “Honcharuk and Partners.”