The Cabinet of Ministers launches a compensation mechanism for war-related risks for businesses up to 10 million hryvnias

The Cabinet of Ministers of Ukraine is launching a mechanism to compensate for war risks for businesses. It covers damages from missile and drone strikes, fragments of air defence systems, explosions and shock waves, as well as fires.

About this, stated Prime Minister Yuliya Svyrydenko.

According to her, businesses in frontline regions will receive compensation for property damaged or destroyed by enemy attacks, up to 10 million hryvnias. Compensation will be provided after the damages are documented and the relevant documents are submitted to PJSC "Export Credit Agency."

At the same time, across Ukraine, a mechanism will be in place under which, following a model similar to "5-7-9%," a portion of the cost of insurance premiums for war risk insurance contracts will be compensated to reduce the rate for businesses to 1%.

"For example, if a business in Rivne Oblast insures property for 50 million hryvnias at a rate of 3%, the state will cover two-thirds of the cost of this insurance - but no more than 1 million hryvnias per year," explained Svyrydenko.

Applications are submitted online on the website of PJSC "Export Credit Agency" or on the Diia.Business platform.

The Prime Minister emphasized that after the compensation is paid, the state will have the right to demand reimbursement from the Russian Federation for damages within the scope of this amount.

"Businesses have been demanding this tool since the first months of the full-scale war: without insurance for war risks, it is impossible to plan work and recovery," she said.

Svyrydenko added that over the past year, enemy shelling of business facilities has increased more than threefold.