Damage to production facilities, warehouses, and equipment caused by military actions remains one of the most significant challenges facing Ukrainian businesses and often requires substantial recovery costs.<\/p>\n
To support enterprises, the government has introduced a dedicated program for partial compensation of war-related losses, administered by the Export Credit Agency of Ukraine (ECA)<\/a> in accordance with Resolution No. 1541 of the Cabinet of Ministers of Ukraine dated November 28, 2025.<\/a><\/p>\n On June 17, the Federation of Employers of Ukraine<\/a>, together with the ECA,<\/a> held a meeting with business representatives to discuss in detail the compensation mechanisms available under the program, as well as the latest amendments introduced in 2026.<\/p>\n We have compiled the key information that businesses should be aware of today.<\/p>\n The program consists of two separate components:<\/p>\n These two instruments are designed to support businesses both after losses have occurred and as a preventive measure aimed at mitigating potential risks.<\/p>\n The following categories of applicants may participate in the program:<\/p>\n At the same time, the program does not apply to certain categories of business entities, including:<\/p>\n The program covers property that has been damaged or destroyed as a result of:<\/p>\n Compensation may be provided for property located in high-risk areas, including the Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions.<\/p>\n Compensation may be claimed for:<\/p>\n To qualify, the property must be owned by the applicant and must have been used in its business operations prior to the damage or destruction.<\/p>\n Following the latest amendments to the program, the maximum compensation amount has been increased:<\/p>\n At the same time, the amount of compensation may not exceed the actual value of the losses incurred.<\/p>\n An important change for businesses is that compensation is no longer reduced by the amount of grants or other forms of state aid previously received.<\/p>\n To participate in the program, an applicant must:<\/p>\n A property valuation report is not required at this stage.<\/p>\n The participation fee amounts to 0.5% of the estimated loss value, capped at UAH 150,000.<\/p>\n Following submission of the application, the ECA has up to 30 days to decide whether to include the applicant in the program.<\/p>\n If property is damaged or destroyed, the business must:<\/p>\n Important:<\/strong> By submitting a claim, the applicant agrees to assign to the State of Ukraine its right to pursue claims against the Russian Federation for compensation of the respective losses.<\/p>\n The second component of the program provides reimbursement for a portion of the costs associated with insuring property against war-related risks.<\/p>\n This instrument is particularly relevant for businesses operating in regions where insurance companies offer war risk insurance coverage.<\/p>\n To qualify for reimbursement, an applicant must:<\/p>\n The State reimburses the portion of the insurance premium corresponding to the insurance rate exceeding 1%.<\/p>\n The maximum reimbursement amount is UAH 3 million.<\/p>\n Example:<\/strong><\/p>\n If the insurance rate is 6%, the State reimburses the difference of 5 percentage points, subject to the maximum reimbursement limit established under the program.<\/p>\n The process consists of the following steps:<\/p>\n If the insurance premium is paid in installments, reimbursement will be provided proportionally to the amounts actually paid.<\/p>\n The most significant amendments to the program include:<\/p>\n Yes.<\/p>\n According to ECA representatives, businesses may apply for compensation even if only windows or certain structural elements of a building were damaged as a result of shelling, provided that all program requirements are met.<\/p>\n No.<\/p>\n At present, the program does not cover:<\/p>\n The estimated amount of potential losses is determined by the applicant.<\/p>\n During the webinar, ECA representatives explained that businesses independently assess the property they wish to include in the program and estimate the potential value of losses. For example, a company may indicate that its potential losses could amount to up to UAH 30 million.<\/p>\n If the application includes multiple assets and the total estimated value of potential losses exceeds UAH 30 million, the one-time participation fee is calculated in accordance with the rules established under the program.<\/p>\n However, the participation fee may not exceed UAH 150,000.<\/p>\n The following documents may be used to confirm ownership:<\/p>\n At the same time, accounting certificates, inventory records, and balance sheet documents alone are not considered sufficient proof of ownership.<\/p>\n Yes.<\/p>\n During the meeting, ECA representatives confirmed that the program allows applicants to add eligible property after the initial application has been filed.<\/p>\n Potentially, yes.<\/p>\n However, eligibility will depend on how the property is described in the application and whether it meets the program’s requirements. In such cases, the ECA may request additional information regarding specific assets.<\/p>\n During the meeting, participants highlighted practical difficulties that may arise when recording damage and interacting with the relevant commissions responsible for assessing losses.<\/p>\n In such cases, ECA representatives recommend contacting the relevant Regional Military Administration for assistance in resolving the issue.<\/p>\n No.<\/p>\n If property was damaged, for example, in 2022, and the business was not participating in the relevant compensation mechanism at the time the loss occurred, the program does not provide retroactive compensation.<\/p>\n Yes.<\/p>\n According to ECA representatives, the location of an asset is one of the key factors influencing both an insurer’s underwriting decision and the applicable insurance rate.<\/p>\n As a general rule, the closer a property is located to active combat zones, the higher the insurance rate is likely to be.<\/p>\n For relatively safer regions, including Kyiv, insurers currently offer rates ranging from approximately 5% to 7.5%.<\/p>\n Insurance rates in western regions of Ukraine are generally lower.<\/p>\n Yes.<\/p>\n The final decision and insurance terms are determined by the insurer.<\/p>\n According to ECA representatives, risk assessments vary across industries. For example, businesses operating in the miltech sector or companies involved in the operation of oil depots may face different insurance terms due to their higher risk profiles.<\/p>\n For the second component of the program (insurance premium reimbursement), the determining factor is not the company’s registered location but whether the insurance contract complies with the program’s requirements.<\/p>\n If an insurance company is willing to provide war risk coverage and the insurance contract meets the requirements established by Resolution No. 1541, the business may qualify for reimbursement.<\/p>\n The insured property must be owned by the business and used in its core business operations.<\/p>\n No.<\/p>\n The ECA verifies whether an applicant meets the requirements established by Resolution No. 1541.<\/p>\n At the same time, agency representatives emphasized that no additional evaluation criteria are applied beyond those expressly set out in the relevant regulatory framework.<\/p>\n According to ECA representatives, each case requires an individual assessment.<\/p>\n If the asset can be classified as production equipment under the program’s rules, its inclusion may be possible.<\/p>\n According to the ECA, the program’s budget for 2026 amounts to UAH 1 billion.<\/p>\n Applications will be processed on a first-come, first-served basis. Businesses that submit the required documents earlier and meet all eligibility requirements will be prioritized for compensation.<\/p>\n The war risk compensation program has become one of the key government support mechanisms available to Ukrainian businesses during wartime.<\/p>\n For manufacturing and industrial enterprises, it provides an opportunity to partially recover losses resulting from property damage or destruction, as well as reduce the cost of war risk insurance coverage.<\/p>\n Particularly important are the latest amendments to the program, which have significantly increased compensation limits and simplified access to the support mechanism.<\/p>\n The UAM has prepared a range of materials covering key government support programs for businesses, including:<\/p>\n If you would like to receive the ECA presentation and a collection of practical guides, click the button below or contact the UAM directly, and we will be happy to provide all materials.<\/p>\nTypes of Support Available Under the Program<\/h4>\n
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Who Is Eligible for Compensation?<\/h4>\n
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Compensation for Damaged or Destroyed Property<\/h4>\n
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Eligible Property<\/h4>\n
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Compensation Amount<\/h4>\n
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\n \nPrevious Limit<\/th>\n Current Limit<\/th>\n<\/tr>\n<\/thead>\n \n Up to UAH 10 million<\/td>\n Up to UAH 30 million<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n How to Join the Program<\/h4>\n
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How to Receive Compensation After a Loss Event<\/h4>\n
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Reimbursement of War Risk Insurance Costs<\/h4>\n
Eligibility Criteria<\/h4>\n
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Amount of Reimbursement<\/h4>\n
How to Receive Insurance Premium Reimbursement<\/h4>\n
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Key Changes Introduced in 2026<\/h4>\n
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Frequently Asked Questions About the War Risk Compensation Program<\/h3>\n
Can a business receive compensation if the damage is minor?<\/h4>\n
Are vehicles and inventory covered by the program?<\/h4>\n
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How should a business determine the estimated amount of potential losses when submitting an application?<\/h4>\n
How is the participation fee calculated if the declared value of property exceeds UAH 30 million?<\/h4>\n
Which documents can be used to prove ownership of equipment?<\/h4>\n
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Can additional equipment be added to the program after the initial application has been submitted?<\/h4>\n
Can solar panels, inverters, and solar power plant equipment be included in the program?<\/h4>\n
What should businesses do if they encounter difficulties registering property in the State Register of Damaged and Destroyed Property?<\/h4>\n
Can compensation be received for losses incurred before the program was launched?<\/h4>\n
Does the location of the property affect the availability of war risk insurance?<\/h4>\n
Does the nature of a company’s business activity affect its ability to obtain war risk insurance?<\/h4>\n
Can a company registered in a frontline region participate in the program if its property is located in another region?<\/h4>\n
Does payment of the participation fee automatically guarantee inclusion in the program?<\/h4>\n
Can locomotives or diesel locomotives be included in the program?<\/h4>\n
Will there be sufficient funding for all participants?<\/h4>\n
Conclusion<\/h4>\n
Need the Presentation and Practical Guides?<\/h4>\n
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