Ministry of Economy Prepares Expansion of War Risk Insurance for Business
The Ministry of Economy, Environment and Agriculture of Ukraine is working on several mechanisms for expanding the war risk insurance program, as business demand already exceeds the available volume of available guarantees.
This was announced by Deputy Minister of Economy Yegor Perelygin during the roundtable “Ukraine on the Investment Map: Capital, Recovery, Growth”, organized by the Union of Ukrainian Entrepreneurs.
According to Perelygin, the ministry is currently considering three main areas for increasing insurance and guarantee capabilities. One of them involves reformatting a joint project with the World Bank for $100 million. The second area concerns attracting financial guarantees through the Polish export credit agency KUKE. The third option involves the possibility of direct financing from the state budget. “We understand that demand significantly exceeds current capabilities. The state must play the role of the first level of responsibility in order to activate the market.”
For the insurance market, this means a gradual transition from individual compensation instruments to a broader architecture of war risk coverage. This is not only about supporting businesses that are already buying policies, but also about creating conditions under which private insurers, reinsurers, and international guarantee institutions will be able to take on larger amounts of risk.
Perelygin also reported that negotiations are ongoing with international brokers to change the logic of insurance itself. The ministry is considering the possibility of moving from covering individual cargoes to insuring entire production clusters and supply chains. This approach may be important for industry, the agricultural sector, exporters, logistics operators, and enterprises that work with a large number of suppliers.
The participants in the discussion also discussed sources of funding for further expansion of the program. Oleg Getman, a representative of the Economic Expert Platform, proposed to allocate UAH 5 billion for investment insurance by redistributing funds from the National Cashback program. In his opinion, such a step may have a higher multiplier effect for the economy and industrial development in 2026.
Earlier, in March 2026, the Cabinet of Ministers adopted Resolution No. 1541, which has already expanded the parameters of the war risk insurance program. The maximum amount of insurance premium compensation for businesses was increased from UAH 1 million to UAH 3 million, and an application for compensation can now be submitted on the 31st day after the conclusion of the insurance contract. For enterprises in front-line regions, compensation for damaged or destroyed property of up to UAH 30 million is provided.
A separate block of support is provided for the agricultural sector and related insurance programs. The state budget for 2026 has allocated more than UAH 2 billion for these areas. Of these, UAH 1.8 billion is directed to compensation for the cost of Ukrainian-made agricultural machinery within the framework of the “Made in Ukraine” policy.
Separate limits are also provided for partial compensation of insurance premiums for producers of winter crops and agro-processors.
Further expansion of the war insurance program may become one of the key elements of Ukraine’s investment policy. For business, it lowers the barrier to entry into risky regions, for insurers it creates new segments of work, and for the state it provides a tool to support production, export and reconstruction without directly replacing the private market.