From 2026, Businesses Can Receive Compensation for Property Destroyed by the War

From 1 January 2026, businesses can use mechanisms of partial compensation for property damaged or destroyed by the war under Cabinet of Ministers of Ukraine Resolution No. 1541 of 28 November 2025 (in force since 29 November 2025), which approved the relevant Compensation Procedure.

The Compensation Procedure provides for two state mechanisms:

1. compensation for damage to or destruction of property;
   
2. compensation of insurance premiums (payments) under war-risk insurance contracts.
   Participation in both mechanisms is subject to a fee, and payments are made by bank transfer to the business’s account.
   

Against this background, legal support for businesses becomes critical — in particular, to join the programmes correctly and to prepare the documents needed to claim compensation.

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1) Who is eligible for compensation

Compensation is available to sole proprietors (FOPs) and legal entities, except for businesses in the state and municipal sectors of the economy.

The following businesses, among others, are not eligible:

• non-residents of Ukraine;
  
• businesses subject to bankruptcy or insolvency proceedings and/or in the process of termination;
  
• businesses with tax debt as of the 1st day of the month preceding the month of application;
  
• businesses that received state aid in breach of the conditions of its provision or intended use (as established in the prescribed manner);
  
• businesses subject to sanctions under the Law of Ukraine “On Sanctions”, as well as related cases involving their ultimate beneficial owners or participants;
  
• businesses whose ultimate beneficial owner is a citizen of the aggressor or occupying state or a person belonging to terrorist organisations;
  
• businesses subject to EU sanctions;
  
• as well as certain categories of agricultural producers (if they are not registered in the State Agrarian Register).
  

To use the mechanism of compensation for damaged or destroyed property, a business must join the programme and pay a one-off fee of 0.5% of the total probable loss for all property registered for participation (based on its actual value according to the valuation report).

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2) What property may qualify for compensation

Compensation for damaged or destroyed property

Resolution No. 1541 applies to property that:

• is located in high-risk areas (within Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv regions), except for temporarily occupied territories (according to the official list of combat areas and temporarily occupied territories);
  
• was damaged or destroyed as a result of war risks (hits by missiles, UAVs, artillery shells and/or their debris, air and missile defence assets; fires, explosions, shock waves);
  
• is owned by the sole proprietor or legal entity and is used (or was used before the damage or destruction) in its core business (buildings and structures, premises, construction in progress started after 1 January 2021, utility networks and equipment, etc.);
  
• was destroyed or damaged after 1 January 2026, provided that the owner was already participating in the programme at that time.
  

Compensation of insurance premiums

Resolution No. 1541 also applies to property that is:

• located in Ukraine (except for temporarily occupied territories with no defined end date of occupation, according to the official list);
  
• insured under a war-risk insurance contract covering damage or destruction caused by the war risks listed above.
  

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3) How to obtain compensation

Compensation for damaged or destroyed property

To receive compensation, a business must:

1. enter the following documents into the Register of Damaged and Destroyed Property: documents confirming ownership; photos (if available); a commission or technical inspection report; a technical condition report; documents confirming the damage or destruction; the technical passport; a valuation certificate and report (standardised, independent or forensic appraisal) stating the amount of direct (actual) loss;
   
2. submit a written application for compensation to the Export Credit Agency (ECA), separately for each property, using the form available on the ECA’s official website.
   

Application deadline: no later than 3 months from the date martial law in Ukraine is terminated or lifted.

The application must be accompanied by:

• a certificate of no tax debt (or an extract from the State Tax Service system on the status of settlements);
  
• a certificate from the Ministry of Economy on grants or cash assistance received in connection with relocation (and/or on any applications for such assistance);
  
• documents confirming the identity and authority of the signatory.
  

Compensation of insurance premiums

Compensation of insurance premiums is paid after the insurance contract expires, upon application to the Export Credit Agency (separately for each contract).

The application must include, in particular:

• documents confirming ownership of the property;
  
• the application to participate in the insurance premium compensation programme;
  
• the insurer’s written notice of inclusion (participation) in the programme;
  
• the insurance contract;
  
• proof of payment of the insurance premium;
  
• a State Tax Service certificate or extract confirming no tax debt;
  
• documents confirming the signatory’s authority;
  
• an extract from the Unified State Register (not later than 10 calendar days before submission);
  
• copies of the signatory’s passport and individual taxpayer number (RNOKPP).
  

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4) Guarantees and limitations

Compensation is paid by Private Joint-Stock Company “Export Credit Agency” from state budget funds transferred by the Ministry of Economy. Acceptance of applications may be suspended if the total amount claimed exceeds the budget allocation.

UAH 1 billion has been allocated for the programme in 2026.

Maximum amounts:

• compensation for damaged or destroyed property — up to UAH 10 million per business, together with related parties, for the entire term of the programme (and no more than the amount of direct/actual loss);
  
• compensation of insurance premiums — up to UAH 1 million per business, together with related parties, per calendar year (in total for all contracts that expired in that year).
  

If you need legal help to prepare everything correctly and put together the documents for your application, contact us. We will provide legal protection for your business at every stage.