Compensation for Damaged Property and War Risk Insurance: Key Clarifications from the UAC Webinar

14.08.2026

More than 180 agricultural producers joined the Ukrainian Agri Council's webinar on compensation of losses to farmers under Resolution of the CMU No. 1541 of November 28, 2025, by which the Cabinet of Ministers of Ukraine approved the Procedure for Providing Partial Compensation of the Cost of Property of Business Entities Destroyed or Damaged as a Result of the Armed Aggression of the Russian Federation, as well as Partial Compensation of Insurance Premiums Under War Risk Insurance Contracts.

A member of the board of PrJSC "Export Credit Agency," Bohdan Brovchenko, explained to agricultural producers the main provisions of the program, the procedure for participating in it, and the operation of its two components: compensation for damaged or destroyed property and compensation of insurance premiums under war risk insurance contracts.

Attention during the webinar was paid to the changes introduced to the program on July 8, 2026. In particular, there was discussion of the clarifications regarding vehicles, self-propelled machines, and special equipment. The Cabinet of Ministers determined that vehicles, self-propelled machines, and special equipment subject to state or departmental registration — in particular cars, trailers, tractors, etc. — do not belong to the category of "production equipment." Accordingly, the program will not cover losses for them.

The procedure for calculating compensation in cases where an enterprise has received indemnification from third parties, for example from an insurance company, was also regulated. In such a case, the state will reduce the amount of its compensation by the corresponding sum. And if the payment from third parties arrived after the state compensation had already been received and in total exceeded the amount of the real losses, the business must return the difference to the state.

Among the important changes is the simplification of procedures for business. The Government abolished the requirement to submit a separate application for each damaged or destroyed unit of property. Now an enterprise can submit a single application for all affected property.

In addition, the submission of an application regarding damaged or destroyed production equipment and engineering networks has been simplified. Enterprises can apply for compensation immediately after they collect the necessary documents: acts of the State Emergency Service, the police, or an extract from the Unified Register of Pre-Trial Investigations, documents confirming the right of ownership, as well as an assessment of the losses. Businesses no longer need to wait for the state to enter these data into the Register of Damaged Property.

The second component of the program concerns the compensation of insurance premiums under war risk insurance contracts. Important changes have also taken place in this part. To receive compensation, it is enough for an enterprise to have property on the right of ownership. The Government removed the requirement that obliged entrepreneurs to use this property specifically in their "main activity."

The 60-day deadline from the date of concluding the insurance contract has also been abolished. Now a company can submit an application for a compensation payment starting from the 31st day after concluding the insurance contract and for another 30 days after its expiry.

Separately, additional time is provided for joining the program. Enterprises that concluded insurance contracts after January 1, 2026, but did not immediately submit an application, can turn to the insurer regarding participation in the program until August 1, 2026.

The principle of calculating the annual compensation limit has also been changed. The maximum amount of compensation — up to UAH 3 million per year — is calculated by the date of concluding the insurance contract, rather than by the date of its completion.

During the webinar, agricultural producers had the opportunity to ask the ECA representative questions regarding the practical application of the program, the preparation of documents, the procedure for submitting applications, and the conditions for receiving compensation.

The webinar was held within the framework of the Ukrainian Agri Council's project to support Ukrainian agricultural producers from affected regions in partnership with the international humanitarian organization Mercy Corps.

As a reminder, agricultural producers can contact the UAC legal advisory line free of charge with practical questions regarding the operation of farms, in particular regarding state support, compensation, lending, land relations, reservation, and tax accounting.

To get a consultation, submit your request via the electronic form: https://forms.gle/v56UzTAsrD9Zrx998

For clarification, contact the legal advisory line at: +38 067 522-03-43

For reference:

MERCY CORPS is an international humanitarian organization that operates in more than 40 countries worldwide and provides assistance to people affected by disasters, wars, poverty, and the consequences of climate change.