Kyiv and the region plan to be added to high-risk territories - source

Kyiv and Kyiv region are planned to be included in the list of high-risk territories due to constant Russian missile and drone attacks. This will allow local businesses to use an expanded mechanism of insurance and compensation for war risks, which is currently primarily focused on regions with elevated threat.

The relevant changes are being prepared by the Ministry of Economy, Forbes Ukraine reports. According to the publication, in the coming weeks the Cabinet of Ministers is to consider amendments to Resolution No. 1541, which regulates state support for war risk insurance.

Kyiv and Kyiv region are to be added directly to the list of high-risk territories. The basis is systematic Russian strikes on the capital and region, as a result of which enterprises are increasingly facing damage to production facilities, warehouses, stores, logistics, and other commercial infrastructure.

Inclusion in this list will give businesses of the capital and region broader opportunities for property insurance against the consequences of war and for receiving state compensations provided by the program.

Separate mechanisms are being prepared for retail

The Ministry of Economy is also considering the possibility of introducing preferential working capital lending for retail. Such a mechanism should help trading companies recover stocks and operations faster after Russian strikes.

The need for separate support instruments has increased due to regular attacks on trade, warehouse, and logistics infrastructure. Enterprises in Kyiv and the region suffer not only direct losses from destruction but also costs due to stoppage of operations, loss of goods, and the need for rapid restoration of facilities.

Kyiv was previously predicted a "frontline status"

Earlier, People's Deputy Ruslan Horbenko said that the government was working on the possibility of granting Kyiv and Kyiv region the so-called "frontline status." According to him, such a decision could expand benefits for businesses, in particular the possibility of employee reservation.

At the same time, the concept of "frontline status" is not a separate universal category in Ukrainian legislation. Current rules operate, in particular, with the concepts of territories of possible and active hostilities, the list of which is formed in accordance with Cabinet Resolution No. 1364.

As of now, Kyiv and Kyiv region do not have the status of a current territory of possible or active hostilities just because of regular missile and drone attacks. Moreover, the current criteria for determining such territories are tied, inter alia, to the distance from areas of active hostilities or the state border with Russia. Therefore, simply granting the capital a "frontline status" within the current mechanism without changing regulatory rules is impossible.

Thus, the solution currently being prepared by the government primarily concerns a separate status of high-risk territory for insurance of war losses. It does not mean automatic inclusion of Kyiv and the region in the list of territories of hostilities and does not automatically trigger all the benefits that the legislation provides for such territories.

At the same time, the government may by separate decisions extend to Kyiv and the region other support mechanisms that today apply to businesses in frontline regions.

Sources: Forbes Ukraine, Novyny.LIVE, legislation of Ukraine