A new war risk property insurance mechanism will take effect in Ukraine on January 1, 2026.
According to the press service of the Ministry of Economy, Environment, and Agriculture, the program will provide direct compensation for losses to businesses in frontline regions and partial reimbursement of insurance premiums for businesses across Ukraine. The program will be administered by the Export Credit Agency (ECA).
“We are launching a mechanism that gives businesses a clear and predictable model of action: insure property through participation in the program and have a guarantee of compensation if the enterprise suffers damage,” said Andriy Teliupa, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
Interested businesses can already contact the ECA for consultations. Requests for documents and clarifications can be sent to [email protected].
Only enterprises participating in the program at the time their property is damaged due to Russia’s armed aggression will be eligible for compensation.
1. Direct compensation for losses in frontline regions:
Compensation is provided to businesses whose property is located in high-risk areas: Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odessa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions (excluding occupied territories).
The maximum compensation is up to UAH 10 million (including related parties) but cannot exceed the actual verified losses.
Participation is voluntary and requires a one-time contribution of 0.5% of the total probable loss for damage/destruction of all property registered in the program.
To receive compensation for damaged or destroyed property, enterprises must:
- Register the property in the Registry of Damaged and Destroyed Property.
- Submit a compensation claim to the ECA with the required documents.
- Receive compensation within 30 days.
2. Partial reimbursement of insurance premiums across Ukraine:
Businesses can receive partial reimbursement of war risk property insurance premiums paid to insurance companies.
The state will reimburse the portion of the insurance rate exceeding 1%, up to UAH 1 million per contract. For example, if the war risk insurance rate is 6%, the state will cover the 5% difference, up to UAH 1 million.
Participation requires a UAH 5,000 contribution to the ECA for each claim submission.
To receive partial insurance premium reimbursement, enterprises must:
- Choose an insurance company, sign a contract, and pay the premium.
- Submit a claim to the ECA with the required documents.
- Receive compensation within 30 days.
The new war risk insurance mechanism is regulated by the “Procedure for Partial Compensation of Property Value for Business Entities Destroyed or Damaged Due to Armed Aggression by the Russian Federation, as well as Partial Compensation of Insurance Premiums for War Risk Insurance Contracts,” approved by Cabinet of Ministers Resolution No. 1541 of November 28, 2025, which came into effect on December 1, 2025.
