Business Compensation for Property Destroyed by the War: Who Is Eligible and How to Apply

Since 1 January 2026, Ukraine has run a state programme of partial compensation for the value of business property damaged or destroyed as a result of the armed aggression. It was introduced by Cabinet of Ministers of Ukraine Resolution No. 1541 of 28 November 2025, which approved the Compensation Procedure (the “Procedure”).

The Procedure provides for two mechanisms:

1. compensation for damaged or destroyed property
2. compensation of insurance premiums under contracts insuring property against war risks

Participation in both programmes is voluntary and subject to a fee. Compensation is paid by Private Joint-Stock Company “Export Credit Agency” (the “Agency”) from the state budget, to the business’s current bank account. It is therefore important to join the programme correctly and to gather 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 are not eligible:

• non-residents of Ukraine
• businesses subject to bankruptcy (insolvency) proceedings or in the process of termination
• businesses with tax debt as of the 1st day of the month preceding the month in which the compensation application was received
• businesses subject to personal sanctions under the Law of Ukraine “On Sanctions”, as well as related cases involving ultimate beneficial owners and participants
• businesses whose ultimate beneficial owner is a citizen of a state recognised by Ukraine as an aggressor or occupying state, or a person belonging to terrorist organisations
• citizens of such a state (except those legally residing in Ukraine) and legal entities established under its laws
• businesses subject to EU restrictive measures

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2. What property qualifies for compensation

Compensation for damaged or destroyed property

Only property owned by the business and belonging to one of the following types is covered:

• production equipment — machines, apparatus, tools, devices and equipment used (or used before the damage) to perform work, manufacture products or provide services
• buildings and structures (production, administrative, warehouse) and individual premises within buildings (offices, workshops)
• utility networks
• fuel storage tanks and reservoirs
• fuel owned by excise warehouse operators, including mobile excise warehouses
• vehicles for transporting or storing fuel that have mobile excise warehouse status
• agricultural machinery
• trucks and trailers (semi-trailers, pole trailers) with a permissible maximum mass of over 7,500 kg

The property must also meet these conditions:

• it is located in a high-risk area (or is there or passing through in transit) and was damaged or destroyed there. High-risk areas are the Dnipropetrovsk, Donetsk, Zaporizhzhia, Kyiv, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv regions and the city of Kyiv — except temporarily occupied territories for which no end date of occupation has been set
• it was damaged or destroyed by a war risk: the direct or indirect impact of weapons — missiles, drones, aerial bombs, artillery shells, air or missile defence assets, etc. — or their debris, or by fire, explosion or shock wave caused by such impact
• it was damaged or destroyed on or after 1 January 2026, when the owner was already a programme participant

Fuel, mobile excise warehouse vehicles, agricultural machinery and trucks may be entered in the programme regardless of where they are registered, but compensation is paid only if they were damaged or destroyed in a high-risk area. Property that was located in temporarily occupied territory on the date Resolution No. 1541 entered into force is not covered.

Compensation of insurance premiums

Part of the insurance premium under a contract insuring property against war risks is compensated if:

• the property is located in Ukraine, except temporarily occupied territories for which no end date of occupation has been set
• the contract covers damage to or destruction of property caused by missiles, drones, air or missile defence assets or their debris, as well as by fire, explosion or shock wave caused by them
• the contract sets out the sum insured, rate and premium for war risks separately (if it also covers other risks)
• the policyholder is a business, and the contract was concluded after 1 January 2026 for a term of no more than one year (365 days)
• the contract may not be terminated early or cancelled; if it is nevertheless terminated early (other than because the insurer has fully performed its obligations), cancelled, or the policyholder withdraws from it (including under Article 107 of the Law of Ukraine “On Insurance”), compensation will be refused

Compensation under one contract is calculated as C = (R − 1%) × S, where R is the insurance rate for the war risk and S is the sum insured for that risk. In other words, the part of the rate above 1% is compensated.

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3. How to obtain compensation

Compensation for damaged or destroyed property

Step 1. Join the programme — before the property is damaged. The application to participate is submitted to the Agency by email, via the Agency’s website or via Diia.Business, together with:

• copies of documents confirming ownership of the property (for real estate — if ownership is not registered in the State Register of Real Property Rights)
• an extract from the Unified State Register (USR) generated no earlier than 10 calendar days before submission
• proof of payment of the fee
• documents confirming the signatory’s authority and copies of the signatory’s passport and taxpayer number (RNOKPP)

The fee is 0.5% of the total probable loss for all property entered in the programme. The business determines the probable loss for each item itself, within its value. In total, the fees may not exceed 0.5% of the maximum compensation, i.e. UAH 150,000. If no event giving rise to compensation occurs, the fee is not refunded.

The Agency reviews the application within 30 calendar days; the business is considered a programme participant from the date the Agency received the application. Property can be added later by a separate application for the inclusion of additional property, with an additional fee.

Step 2. After the property is damaged or destroyed, submit a compensation application. It is submitted to the Agency in the same ways, together with:

• a certificate of no tax debt or an extract from the State Tax Service information system on the status of settlements with the budget
• a USR extract generated no earlier than 10 calendar days before submission
• documents confirming ownership of the property
• documents confirming the war risk: an extract from the Unified Register of Pre-trial Investigations, together with State Emergency Service reports or certificates from the National Police or the Security Service of Ukraine
• a property valuation report, valuation certificate or forensic expert opinion stating the amount of direct (actual) loss
• documents confirming the signatory’s authority and copies of the signatory’s passport and RNOKPP

The amount of direct (actual) loss is determined under the Procedure approved by Cabinet of Ministers Resolution No. 326 of 20 March 2022 and the Methodology approved by Order No. 3904/1223 of the Ministry of Economy and the State Property Fund of 18 October 2022. The application may be submitted as soon as all documents have been collected, but no later than three months after martial law is terminated or lifted. The Agency reviews it within 30 calendar days and may extend this period by another 30 days.

By submitting the application, the business accedes to an agreement assigning to the state its right to claim compensation for the losses from the aggressor state, to the extent of the compensation received.

Compensation of insurance premiums

The application to participate in the programme is submitted to the insurer together with the documents for concluding the contract, but no later than 7 calendar days after the contract is concluded — separately for each contract. The fee is UAH 5,000, paid to the Agency’s account. Within 5 business days, the insurer notifies the business of its inclusion in the programme or of a refusal.

The application for payment of compensation is submitted to the Agency separately for each contract: no earlier than the 31st calendar day after the contract is concluded and no later than 30 calendar days after it expires. If the premium is paid in instalments, the application for each subsequent instalment is submitted after it has been paid. The application must be accompanied by:

• a copy of the application to participate in the programme submitted to the insurer
• a copy of the insurer’s notice of inclusion in the programme
• a copy of the insurance contract
• proof of payment of the insurance premium
• a certificate of no tax debt or an extract from the State Tax Service information system
• documents confirming the signatory’s authority and copies of the signatory’s passport and RNOKPP
• a USR extract generated no earlier than 10 calendar days before submission

The Agency reviews the application within 30 calendar days and may extend this period by another 30 days.

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4. Guarantees and limitations

Maximum compensation:

• for damaged or destroyed property — up to UAH 30 million per business in total for all property over the entire term of the programme, and no more than the probable loss the business stated in its participation application
• for insurance premiums — up to UAH 5 million per business per calendar year across all contracts

Other limitations:

• indirect losses — lost profits, taxes, etc. — are not compensated
• if the business has received compensation from third parties, including an insurance indemnity, compensation is calculated from the amount of direct loss reduced by that sum; the Agency must be notified of such compensation within three calendar days
• compensation is paid only within state budget funds; if there is no funding, it is not paid and the fee is not refunded
• the Agency stops accepting participation applications once 90% of the budget allocation for the programme has been used, and compensation applications once their total amount exceeds that allocation
• the Agency’s decision to pay or refuse compensation can be challenged in court

Information updated as of October 2026, based on Cabinet of Ministers Resolution No. 1541 as amended by Resolution No. 1157 of 17 September 2026. The programme’s terms change frequently; seek legal advice before submitting documents.

Need help with compensation? A lawyer will check whether your property qualifies for the programme and help you gather the documents and challenge a refusal by the Agency. Learn more on the Restoring Ukraine page.