Source: Yurydychna Praktyka
On November 28, 2025, the Cabinet of Ministers of Ukraine (CMU) adopted Resolution No. 1541, which approved the Procedure for Providing Partial Compensation for the Value of Property of Business Entities Destroyed or Damaged as a Result of the Armed Aggression of the Russian Federation (RF), as well as the Procedure for Compensating Insurance Premiums under War Risk Property Insurance Contracts.
The document introduces a full-fledged state programme for compensating the value of property owned by business entities that was destroyed or damaged as a result of hostilities, and also provides for the possibility of partial compensation of insurance premiums for war risk insurance contracts.
Partial compensation may be obtained for damaged or destroyed buildings and structures (production, administrative, storage, etc.), individual premises (offices, workshops), construction-in-progress objects commenced after January 1, 2021, and external and internal engineering utilities and equipment (heating, water, electricity supply systems, etc.) that belong to the business entity by right of ownership and are used by it during its main business activity or were used prior to the damage/destruction.
The procedure stipulates two separate mechanisms for recovery: (1) Partial compensation for the value of property of business entities destroyed or damaged as a result of the armed aggression of the RF; (2) Partial compensation of insurance premiums for war risk property insurance contracts.
The mechanism for partial compensation for the value of destroyed or damaged property as a result of the RF’s armed aggression applies exclusively to property located in high-risk territories (Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions, excluding territories temporarily occupiedby the Russian Federation), and was damaged or destroyed due to the occurrence of war risks caused by the armed aggression of the Russian Federation against Ukraine.
War Risks Covered by Compensation: (a) Strikes by missiles, unmanned aerial vehicles of any types, artillery shells and/or their fragments, air defence systems, and anti-missile defence systems; (b) Fires, explosions, and shockwaves.
Participation in the programme is voluntary and fee-based. To participate in the compensation programme for property damage/destruction, the business entity must submit a corresponding application for participation in the programme to PJSC “Export Credit Agency” (ECA) with the following documents:
A fee equal to 0.5 per cent of the total sum of probable loss for damage/destruction of the entire property is paid for participation in the compensation programme. The sum of probable loss is indicated by the business entity in the application and cannot exceed the actual value of such property, as determined by the appraisal report.
The total maximum limit for compensation for property damage/destruction of a business entity together with its affiliated persons collectively cannot exceed 10 million UAH throughout the entire term of the programme, and cannot exceed the amount of the direct (actual) loss.
Furthermore, business entities receiving grants for the creation or development of their own business may receive compensation within the general maximum limit, reduced by the amount of the previously received grant.
It is important that compensation can be obtained exclusively for damaged or destroyed property for which damage was inflicted after 01.12.2025.
To receive compensation for property damage/destruction, the business entity must submit a written application to the Agency for compensation for property damage/destruction and include:
The size of the compensation is determined for each property separately based on the property valuation report and constitutes the amount of the direct (actual) loss, but cannot exceed the sum of probable loss for damage/destruction of the corresponding property, as indicated by the business entity in the application for participation in the compensation programme.
The insurance premium mechanism can be applied to property located across the territory of Ukraine, excluding territories temporarily occupied by the Russian Federation, which are included in the list of territories where hostilities are (or were) conducted or which are temporarily occupied by the Russian Federation.
Compensation for insurance premiums is provided for property insurance contracts against war risks that meet all the following conditions:
Participation in the premium compensation programme is voluntary and fee-based. For participation in the insurance premium compensation programme, the business entity pays a fee of 5,000 (five thousand) UAH to the Agency’s account upon submitting each individual application.
Compensation for insurance premiums is provided to business entities exclusively for insurance contracts that were concluded after December 1, 2025.
To participate in the programme, the business entity must submit an application to the insurer for participation in the insurance premium compensation programme when concluding the insurance contract.
The insurance premium compensation is paid after the expiration of the insurance contract term. To receive compensation, the business entity participating in the programme must submit an application for payment of the insurance premium compensation to the Agency after the expiration of the insurance contract term.
The general maximum limit for insurance premium compensation per business entity together with affiliated persons during a calendar year cannot exceed 1 million UAH cumulatively for all insurance contracts whose term expired within that calendar year.
Regardless of the mechanism, receiving compensation entails automatically acceding to an assignment agreement(cession), which provides for the transfer of the right of claim against the Russian Federation to the state, within the limit of the compensation amount.
It should be noted that errors in the documents for obtaining compensation or the submission of an incomplete package of documents by the business entity are grounds for refusal to grant compensation without the possibility of returning the paid one-time fee.
CMU Resolution No. 1541 is an important and long-awaited step that finally launches a real mechanism for state compensation of war losses for businesses. Compensation for damages inflicted on the property of business entities will facilitate the rapid recovery and protection of our country’s economy, as business entities can now receive appropriate compensation for the value of destroyed or damaged property without resorting to a court lawsuit to recover damages from the RF, which is a real and effective mechanism for accelerated reconstruction.
Olga Sydorchuk, Partner at Altelaw&Sempra
More details
More details
More details
