The Cabinet of Ministers of Ukraine has made decisions that open the mechanism for compensating war losses for entrepreneurs. From now on, businesses, especially from frontline regions, have the opportunity to reclaim up to 10 million hryvnias in case of damage or destruction of property due to attacks from Russia.
This is reported by Finway
How Compensation for Affected Enterprises Will Work
Enterprises that have suffered losses due to hostilities must document their losses and submit the relevant documents to the Export Credit Agency. After verification, the state will compensate part of the losses within the established limit. For entrepreneurs from other regions, compensation for part of the cost of insurance against war risks is provided.
“After documenting the losses and submitting the documents to the Export Credit Agency, the state reimburses part of the losses within the limit. For enterprises in other regions, the state will compensate part of the cost of insurance against war risks. Under a model similar to ‘5-7-9%’, the state compensates part of the cost of insurance premiums for contracts against war risks – to reduce the rate for businesses to 1%. For example, if an enterprise in the Rivne region insures property for ₴50 million at a rate of 3%, the state will cover two-thirds of the cost of this insurance – but no more than ₴1 million per year,” the Cabinet explained.
Increased War Risks for Ukrainian Businesses
The government emphasizes that without insurance against war risks, planning and restoring the operations of enterprises is impossible. Over the past 12 months, the number of attacks on business facilities has increased by more than 200%, necessitating the provision of financial guarantees for the stable operation of enterprises.