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Ukrainian Entrepreneurs Can Now Claim Compensation for War-Related Income Loss

SMEs can apply for compensation for lost income due to war
Підприємці України отримали можливість відшкодування втрат доходів, спричинених війною.

Filing Claims with the International Register of Damage

According to Главком: Sole proprietors in Ukraine are now eligible to file claims for compensation under a new category, A3.5, titled 'Loss of Private Entrepreneurship,' within the International Register of Damage (RD4U). This initiative specifically addresses the actual loss of business income, including projected profits that were never realized. Eligibility extends to entrepreneurs who have suffered profit loss or were forced to cease operations after Russia's full-scale invasion began on February 24, 2022. This register is a key mechanism for documenting war-related losses, which is crucial for future reparations and international support.

The International Register of Damage recently began accepting applications in another new category, A1.2, which covers the forced displacement of Ukrainians abroad. To date, the register has received 100,000 claims from individuals. The Register's Executive Director, Markiyan Klyuchkovsky, noted that

"the current number of applications is just the beginning, as all available claim categories are scheduled to open by the first half of 2026."

Eligibility and Application Process

Valid reasons for submitting a claim include:

  • Combat operations or occupation,
  • Property destruction,
  • Forced relocation within Ukraine or abroad,
  • Mobilization or voluntary participation in national defense,
  • A critical drop in demand due to the war.

The application process involves several steps:

  • First, register or log into a citizen's account on the Diia portal using an electronic signature,
  • Then, complete the application form, specifying the date the business ceased, a description of the events leading to the loss, pre-loss income data, and the desired compensation amount,
  • Finally, sign the application electronically and submit it.

Applicants may also attach supporting documents, such as evidence of business cessation, income information, proof of special status (e.g., military service), and financial statements available electronically through tax authorities. Citizens are already actively submitting information on damaged residential property, forced displacement, loss of family members, and harm to health, including cases of torture and sexual violence.

The introduction of these new categories in the International Register of Damage represents a significant step in supporting entrepreneurs impacted by the war. It not only provides a path for potential compensation but also serves to systematically document the vast scale of economic damage, which is vital for Ukraine's recovery and for securing international aid. The phased opening of claim categories reflects a structured approach by the government and international institutions to address the comprehensive needs of the country's reconstruction.

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