Ukrainian govt launches compensation mechanism for war-related business risks – PM

Ukraine's Cabinet of Ministers is launching a mechanism to mechanism businesses for war-related risks, Prime Minister Yulia Svyrydenko announced.

"Enterprises located in high-risk areas [frontline regions] will be able to receive up to UAH 10 million in compensation for property damaged or destroyed as a result of attacks. After documenting losses and submitting the required documents to JSC Export Credit Agency, the state will reimburse part of the losses within this limit," Svyrydenko wrote on her Telegram channel following the government meeting on Friday.

As for the program's nationwide coverage, Svyrydenko said that under a model similar to the "5-7-9%" business support program, the state will compensate part of the insurance premium costs under war-risk insurance contracts, in order to reduce the insurance rate for businesses to 1%.

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

Applications can be submitted online via the JSC Export Credit Agency website or through the Diia.Business platform.

The program provides compensation for losses caused by missile and drone strikes, air defense debris, fires, explosions, and shock waves.

"Importantly, after the compensation is paid, the right to claim reimbursement of damages from Russia within that amount is transferred to the state," Svyrydenko said.

According to her, this mechanism is part of the government's "Made in Ukraine" industrial development policy.

As reported, the Japan Bank for International Cooperation (JBIC) is considering the establishment of a special credit line with expanded risk insurance to finance energy projects in Ukraine.

Meanwhile, Japan's export credit agency NEXI is ready to expand war-risk insurance coverage in Ukraine, a key factor for attracting Japanese investment and technology to the recovery of Ukrainian industry and infrastructure.