Government launches war risk compensation mechanism for businesses: Yulia Svyrydenko

The Government is launching a war risk compensation mechanism for businesses. This was announced by Prime Minister of Ukraine Yulia Svyrydenko.

“Businesses have been calling for this tool since the early months of the full-scale war: without war risk insurance, it’s impossible to plan operations and recovery. Over the past year alone, attacks on business assets have more than tripled – financial guarantees are critically needed,” stated the Head of Government.

Compensations will be of two types:

1) Frontline regions

Businesses in high-risk territories will be able to receive up to UAH 10 million in compensation for damaged or destroyed property resulting from attacks. Following the documentation of losses and submission of documents to Export Credit Agency, the state will reimburse a portion of the losses within this limit.

2) Across Ukraine

Under a model similar to the “5-7-9%” programme, the state will compensate a portion of the insurance premiums for war risk insurance contracts – to reduce the rate for businesses to 1%.

For example, if a business in Rivne region insures property worth UAH 50 million at a 3% rate, the state will cover two-thirds of the cost of this insurance, but no more than UAH 1 million per year.

Applications can be submitted online via the Export Credit Agency website or the Diia.Business platform. Compensations cover losses from rocket and drone strikes, air defence debris, fires, explosions, and blast waves. Importantly: after compensation is paid, the right to claim damages from russia within this amount is transferred to the state.

“This mechanism is part of the Made in Ukraine policy for the development of Ukrainian manufacturers. It’s about resilience and protective tools, so that Ukrainian businesses can operate and grow even during wartime,” noted Yulia Svyrydenko.