The Cabinet of Ministers has approved the budget for compensations to shipowners and charterers whose vessels have been damaged due to Russian attacks. This is stated in the draft resolution of the Cabinet of Ministers of Ukraine, as reported by the Ministry of Development.
The draft provides for compensation guarantees for damages caused by Russia's armed aggression to charterers, operators, and/or owners of marine vessels and inland waterway ships, as well as the creation of favorable conditions to ensure stable shipping in Ukraine's territorial sea and the operation of the Temporary Sea Route for export-import logistics to/from Ukrainian ports in the Greater Odessa region.
According to established practice, standard exclusions from insurance coverage include incidents that occur during an emergency, special, or wartime state declared by the authorities of the country or in the territory covered by the insurance contract.
Due to Russia's armed aggression against Ukraine and military risks, classic coverage for insurance payments is currently unavailable for vessels traveling to the northwest part of the Black Sea. Specifically, these areas are designated as regions with navigation restrictions for military operations, strikes, terrorism, and related risks — The Listed Areas, published by the United Military Committee in London.
For the stable operation of maritime logistics, shipowners and foreign partners must be confident in the maximum security guarantees for transport and the receipt of state compensation in case of damage due to Russia's armed aggression at sea. This is confirmed by requests from businesses involved in maritime transport for the continuation of the compensation mechanism.
Article 35 of the Law of Ukraine "On the State Budget of Ukraine for 2025" establishes that in 2025, charterers, operators, and/or owners of marine vessels and inland waterway ships, flying the flags of Ukraine and foreign countries, may be provided with compensation guarantees for damages caused by Russia's armed aggression against Ukraine, up to 2 billion UAH from the reserve fund of the state budget.
Exceptions include vessels owned by citizens of the Russian Federation and the Republic of Belarus, legal entities registered in those countries, sanctioned individuals, and companies, etc.
The draft also proposes establishing a list of types of damages eligible for compensation, conditions for applying compensation, requirements for damage assessment, a list of documents to be submitted by shipowners to the Ministry of Development for compensation, and the deadline for submitting such documents.
