How can a business receive compensation for property damaged or destroyed due to war and missile strikes?
The state system for compensation for losses caused by war to enterprises was formed in stages. The first step was the Resolution of the Cabinet of Ministers of Ukraine No. 326 of March 20, 2022, which approved the procedure for determining the damage and losses caused to Ukraine as a result of the armed aggression of the Russian Federation. The document established general rules for recording and assessing losses of the state, citizens and business, starting from February 19, 2014.
The next stage was the Resolution of the Cabinet of Ministers of Ukraine No. 380 of March 26, 2022, which introduced a mechanism for submitting information reports on damaged or destroyed real estate.
This mechanism became the basis for centralized accounting of housing damaged as a result of hostilities, missile strikes, sabotage or terrorist acts.
The key document for compensation for residential real estate was the Law of Ukraine No. 2923-IX, which entered into force on May 22, 2023. It defined the circle of persons who can apply for state support, types of compensation and conditions for its provision.
A separate mechanism is in place for business. From January 1, 2026, private sector enterprises can use the program of partial compensation for the value of property damaged or destroyed as a result of the war, as well as compensation for insurance premiums under war risk insurance contracts.
This mechanism was introduced by the Resolution of the Cabinet of Ministers of Ukraine No. 1541 of November 28, 2025, which entered into force on November 29, 2025 and approves the procedure for providing partial compensation for the value of property of business entities destroyed or damaged as a result of Russia’s armed aggression, as well as partial compensation for insurance premiums under war risk insurance contracts.
The program is implemented with the participation of the Export Credit Agency of Ukraine. Its important condition is that compensation applies to war risks that occurred after the enterprise acquired the status of a program participant.
The compensation procedure provides for two mechanisms:
The first concerns partial compensation for the value of property of business entities damaged or destroyed as a result of the armed aggression of the Russian Federation.
The second provides for partial compensation for insurance premiums under insurance contracts against war risks.
Participation in both mechanisms is paid. Compensation is made in a non-cash form by transferring funds to the account of the business entity.
To be entitled to potential compensation for damaged or destroyed property, the enterprise must become a participant in the relevant program and pay a one-time contribution when submitting an application. The contribution amount is 0.5% of the total amount of probable damage for all property declared for participation in the program, but not more than UAH 150,000. If the business entity has paid more, the overpayment can be refunded.
The amount of probable damage cannot exceed the actual value of such property according to the property valuation report. This means that the business must determine in advance the objects that are included in the program, confirm their value and pay a contribution for participation.
To become a participant in the property compensation program, the enterprise submits an application to the ECA by mail or via the agency’s website. The application must be accompanied by confirmation of ownership of the property, an extract from the Unified State Register, a document confirming payment of the contribution and documents on the signatory. A property valuation report is not required. The agency must provide a response on inclusion in the program within 30 days.
Case law on compensation for losses from war risks
After the start of a full-scale war, the Supreme Court formed a position on the possibility of Ukrainian courts considering claims for compensation for damage directly to the Russian Federation.
In its resolution of April 14, 2022 in case No. 308/9708/19, the Supreme Court noted that the aggressor state cannot invoke judicial immunity in cases related to the consequences of armed aggression. This opened up the possibility of filing claims against the Russian Federation in Ukrainian courts.
The practical implementation of such decisions remains a separate problem. Even with a court decision, the mechanisms for actually collecting funds from the aggressor state are still being formed.
Therefore, for business, the state compensation program and insurance mechanisms for war risks are of practical importance now, as they allow you to include property in the program in advance and gain access to a compensation tool in the event of future losses.
Commercial war risk insurance programs and a state loss compensation program are already operating in Ukraine.
Who can receive compensation for losses from war risks
Recipients of assistance can be business entities – individual entrepreneurs or legal entities, except for entities of the state and municipal sectors of the economy.
Compensation cannot be received by non-residents of Ukraine, enterprises in bankruptcy proceedings or cessation of activity, entities with tax debt, recipients of state aid in violation of the terms of its provision, individuals and companies under Ukrainian or European sanctions, businesses with beneficiaries – citizens of the aggressor state or associated with terrorist organizationsizations, citizens of the aggressor state or companies established under the legislation of the aggressor state, as well as entities that are not registered in the State Agrarian Register, if such registration is mandatory.
Compensation for damaged or destroyed property applies to property located in high-risk territories. These include Dnipropetrovsk, Donetsk, Zaporizhia, Mykolaiv, except for the occupied territories, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv regions.
The program understands military risks as direct or indirect effects of various types of weapons, including missiles, unmanned aerial vehicles of any type, aircraft bombs, artillery shells, air defense systems, missile defense systems, fragments of such weapons, as well as fire, explosion or shock wave.
What can be insured against war risks
The program may include buildings and structures, including production, administrative and warehouse facilities, separate premises within buildings, including offices and workshops, engineering networks, as well as production equipment. The property must belong to the business entity on the right of ownership and be used in the main activity or used until the time of damage or destruction.
The maximum amount of compensation for damaged or destroyed property is up to 30 million UAH. The amount of compensation cannot exceed actual losses and is not reduced by the amount of previously received grants or other state aid.
Relationships between individuals are not taken into account. Enterprises that have already submitted applications could clarify them, increase previously declared amounts of possible losses, or add other property by May 1, 2026.
Compensation of insurance premiums under war risk insurance contracts
Regarding the compensation of insurance premiums to enterprises, which applies to the territory where insurance companies are ready to provide business with war risk insurance services.
The conditions for receiving compensation for insurance premiums are as follows: the insurance contract must be concluded after the entry into force of the Resolution of the Cabinet of Ministers No. 1541 dated November 28, 2025, the contract must comply with the conditions of the procedure for providing compensation, and the business entity must meet the criteria of the program.
Participation in the insurance premium compensation program is voluntary and paid. A contribution of UAH 5,000 is paid for each separate application.
The state compensates for everything that exceeds 1% of the insurance tariff, but not more than UAH 3 million. For example, if the war risk insurance tariff is 6%, the state compensates for the difference of 5 percentage points, but within the limit of UAH 3 million.
After the changes of March 18, 2026, the terms of the war risk insurance program were expanded – for property compensation, the maximum amount of support increased from UAH 10 million to UAH 30 million. The amount of compensation is no longer reduced by the amount of previously received grants or other state assistance.
Why is there low interest in Ukraine in participating in the state war risk insurance program?
Ukraine is currently experiencing low interest in participating in the state war risk insurance program. In total, less than 300 applications have been submitted by businesses.
Such a level of interest may not make it possible to increase the funding of the program from UAH 1 billion to UAH 2 billion in the state budget for 2027. However, allocating UAH 2 billion instead of UAH 1 billion for 300 business entities is an inadequate decision, believes Danylo Hetmantsev, Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy.
State support for war risk insurance is implemented in two directions: insurance through the Export Credit Agency for enterprises located in front-line territories at affordable rates; compensation of part of the insurance premium for companies that insure war risks.
Hetmantsev noted that the program is already working – the state has already made the first three full payments to compensate for losses. He called on business representatives to familiarize themselves with the terms of the program and report problems that require correction.