Government expands war-risk insurance programme for businesses and simplifies compensation process
The Government has broadened its existing war-risk insurance programme for businesses and simplified the mechanisms for obtaining compensation.
"Russia is deliberately attacking civilian businesses, warehouses, and logistics facilities every single day. Businesses are suffering significant losses and need support to recover quickly," said Prime Minister of Ukraine Sergii Koretskyi.
Next year's draft State Budget includes a dedicated line of expenditure for war-risk insurance. At the same time, businesses need support now, which is why the Government is widening the scope of the current programme in the meantime.
The changes envisage:
- Kyiv city and Kyiv region have been added to the list of high-risk territories.
- The list of eligible property has been expanded. Businesses can now claim compensation for damaged or destroyed fuel, as well as the vehicles used to transport and store it. "This is an important decision for fuel infrastructure, which remains one of the key targets of Russian attacks. We're also adding agricultural machinery, trucks, and trailers to the list," the Prime Minister added.
- The maximum compensation for insurance premiums has been increased from UAH 3 million to UAH 5 million per year per business. This mechanism now also applies to leased property, and the requirements for insurance contracts have been simplified.
In addition, this week the Government stepped up state support for major projects in the fuel, logistics, trade, and processing industries.
Preferential loans will now also be available for rebuilding fuel and warehouse infrastructure, modernising processing enterprises, and replenishing the working capital of wholesale and retail trade businesses.
The state will cover 5.5 percentage points of the bank's base interest rate. The maximum lending limit for a group of related companies will be UAH 1 billion.
"We are making these decisions under tight financial constraints. But supporting businesses is essential if Ukrainian companies are to keep operating, preserve jobs, and keep paying taxes," Sergii Koretskyi emphasised. "Our task is to minimise the impact of Russian attacks on Ukrainian business and give entrepreneurs additional tools to recover."
