New Property Insurance Mechanism in Ukraine
Beginning January 1, 2026, Ukraine will implement a new property insurance system to cover war-related risks. This program will provide direct compensation for damages to companies in frontline regions and partial compensation for insurance premiums for businesses across the country.
According to the Ministry of Economy, Environment, and Agriculture, this initiative is part of the support policy for Ukrainian manufacturers branded as "Made in Ukraine." The program will be administered by the Export Credit Agency (ECA).
Only businesses participating in the program at the time of property damage will be eligible for compensation.
The new war risk insurance mechanism is governed by a regulation approved by the Cabinet of Ministers on November 28, 2025, No. 1541, which came into effect on December 1, 2025.
Direct compensation for damages in frontline regions will be available to businesses whose property is located in high-risk areas (Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions, excluding occupied territories).
The maximum compensation amount is up to UAH 10 million (including related persons), but not exceeding the actual confirmed losses.
Participation in the program is voluntary and requires a one-time contribution of 0.5% of the total potential loss from damage/destruction of all property declared for 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 a compensation request to the Agency.
Supporting documents to be attached to the request include:
- documents confirming ownership,
- certificate of tax debt absence,
- photos of the damage (if available),
- inspection act,
- technical condition report,
- evidence of destruction/damage (acts/certificates from the State Emergency Service, national police, etc.)
- technical passport, act, and property valuation report, documents for the signatory.
Compensation will be calculated within 30 days.
Partial compensation of the insurance premium for businesses across Ukraine
Businesses can receive partial compensation for insurance premiums under property insurance contracts against war risks made with insurance companies. The state compensates part of the insurance rate exceeding 1%, up to UAH 1 million for each contract. Thus, if the insurance rate is 6%, the state compensates the difference of 5%, but not exceeding UAH 1 million.
For participation in the insurance premium compensation program, companies must pay a contribution of UAH 5,000 to the ECA when submitting each application.
To receive partial compensation of the insurance premium, it is required to:
- Choose an insurance company, sign a contract, and pay the insurance premium.
- Submit a compensation request for the insurance premium to the ECA 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.
