Ukraine Boosts Business Compensation for War Damage to 30 Million Hryvnias

Revised Business Compensation Program

According to Главком: The Ukrainian government has approved significant changes to its compensation program for businesses, aiming to ease the financial burden on enterprises affected by the war. These changes involve raising the maximum payout limits, streamlining application and payment procedures for damaged property and insurance costs.

Specifically, the compensation limit for property damage in frontline regions has been tripled, rising from 10 million to 30 million hryvnias. A key rule has also been abolished: compensation will no longer be reduced by the amount of any previously received state grants or support. Businesses that have already submitted applications have until May 1, 2026, to update them. To date, 52 claims have been filed under the damaged property compensation scheme, with 20 approved for a total of 166.5 million hryvnias. This policy is part of broader efforts to sustain the private sector during the ongoing conflict.

Insurance Cost Reimbursements

The maximum compensation for insurance costs has also been increased, from 1 million to 3 million hryvnias. The process for receiving this support has been simplified:

• Applications for reimbursement can now be submitted starting on the 31st day after an insurance contract is signed;
• If an insurance premium is paid in installments, the compensation will also be paid out proportionally in parts.

So far, 21 applications have been submitted for insurance premium compensation.

"The government is expanding the war risk insurance program," stated Deputy Prime Minister Yulia Svyrydenko.

Additionally, owners of destroyed homes in temporarily occupied territories or combat zones can now file a claim to the international Register of Damage through the 'Diia' platform. The Cabinet of Ministers' changes are designed to improve business conditions in Ukraine and support entrepreneurs during this difficult period.

These measures aim not only to alleviate the financial strain on businesses but also to foster economic recovery in wartime. Increasing compensation payouts is a crucial step for supporting damaged enterprises and could stimulate investment and the revival of production in affected regions. The government's continued work on refining support mechanisms demonstrates its focus on restoring economic stability in the country.

In addition to the new compensation measures for businesses, the Ukrainian government is also set to introduce a fresh energy loan initiative aimed at supporting medium and large enterprises. This program reflects the government's commitment to bolster the economy amidst ongoing challenges and further assist businesses in navigating the current landscape.