New Property Insurance Mechanism in Ukraine
Starting January 1, 2026, Ukraine will implement a new property insurance mechanism that will provide direct compensation for businesses in frontline areas and partial compensation for insurance premiums across the country.
According to the Ministry of Economy, this program is part of the "Made in Ukraine" initiative to support domestic producers. The Export Credit Agency (ECA) will oversee its administration.
Only businesses that are participants in the program at the time of property damage due to Russian military aggression will be eligible for compensation.
The new war risk insurance mechanism is regulated by the Order approved by the Cabinet of Ministers of Ukraine on November 28, 2025, No. 1541. This document comes into effect on December 1, 2025.
Direct compensation for losses will be provided to businesses with property located in high-risk areas (including Dnipropetrovsk, Donetsk, Zaporizhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions, excluding occupied territories).
The maximum compensation amount can reach up to 10 million UAH (including related parties), but will not exceed the amount of confirmed losses.
Participation in the program is voluntary and requires a one-time contribution of 0.5% of the total potential loss amount for damage/destroyed property declared for participation in the compensation program.
To receive compensation for damaged or destroyed property, it is necessary to register the property in the Register of Damaged and Destroyed Property and submit an application to the Agency for compensation.
Applications must include:
- documents proving ownership,
- certificate of absence of tax debts,
- damage photos (if available),
- inspection act,
- technical condition report,
- evidence of destruction/damage (acts/certificates from the SES, national police, etc.),
- technical passport, act and property valuation report, documents for the signatory.
Compensation will be calculated within 30 days.
Compensation for part of the insurance premium for businesses throughout Ukraine
Businesses can receive partial compensation for insurance premiums under war risk property insurance contracts concluded with insurance companies. The state compensates part of the insurance rate that exceeds 1%, up to 1 million UAH for each contract. Thus, if the war risk insurance policy rate is 6%, the state covers the difference - 5%, but not exceeding 1 million UAH in total.
For participating in the insurance premium compensation program, each business must pay a fee of 5,000 UAH to the ECA account when submitting each application.
To obtain partial compensation for the insurance premium, it is necessary:
- Select an insurance company, conclude a contract with it, and pay the insurance premium.
- Submit an application to the ECA for the payment of the insurance premium compensation along with the document package.
- Receive compensation within 30 days.
The Ministry of Economy states that interested entrepreneurs can contact the Export Credit Agency for consultations.
