Government expands war risk insurance for business, Kyiv and region added to program
The government has expanded the state program for war risk insurance for business: Kyiv and Kyiv region have been added to the high-risk areas, the maximum compensation for insurance premiums has been increased from 3 to 5 million UAH per year, and the list of property covered by the support has been supplemented with fuel, transport, agricultural machinery, trucks, and trailers.
This was reported by Prime Minister Serhiy Koretsky.
The inclusion of Kyiv and Kyiv region in the list of high-risk areas expands the opportunity for businesses located there to claim state compensation for property damaged or destroyed as a result of Russian attacks.
Previously, this mechanism primarily covered regions with a high risk of shelling, including Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv regions.
More types of property will be compensated
The government has also expanded the list of property whose damage or destruction can be compensated under the program.
Fuel and transport used for its transportation and storage have been added. According to Koretsky, this should strengthen support for fuel infrastructure, which has recently remained one of the targets of Russian attacks.
Agricultural machinery, trucks, and trailers have also been included in the program.
Another change concerns insurance premiums. Their maximum compensation has been increased from 3 million to 5 million UAH per year for one enterprise.
In addition, the mechanism applies to leased property, and requirements for insurance contracts are to be simplified.
The program has already been expanded several times
The state program for insurance of business property against war risks came into effect on January 1, 2026. It is administered by the Export Credit Agency.
Initially, the maximum compensation for damaged or destroyed property was 10 million UAH, and compensation for insurance premiums was up to 1 million UAH per contract. In March, the government increased the maximum compensation for property to 30 million UAH, and for insurance premiums to 3 million UAH. Now the latter limit is being raised once again — to 5 million UAH per enterprise during the year.
The government has also gradually simplified the participation procedure. In particular, enterprises were allowed to submit applications for insurance premium compensation earlier, and in the summer confirmation of losses was simplified and the deadlines for appeal were extended.
As of June, in the direction of compensation for destroyed or damaged property, the state has approved 106 applications from enterprises with a total potential payment volume of 1.8 billion UAH. For insurance premium compensation, businesses have submitted 40 applications for insurance coverage with a total value of 4.3 billion UAH.
In the 2027 budget, a significantly larger insurance reserve is to be created
The expansion of the current program is to be an interim solution before the launch of a larger-scale mechanism. Earlier, Koretsky stated that the government plans to provide a separate item in the 2027 budget of approximately $1 billion for war risk insurance.
The authorities expect to attract international partners to the mechanism and increase the available resource. According to the prime minister, the goal is to create a reserve capable of covering about 40-50% of business losses from Russian attacks.
In parallel, the government is expanding credit support for enterprises recovering from shelling. According to Koretsky, preferential loans can be obtained, in particular, for rebuilding fuel and warehouse infrastructure, modernizing processing enterprises, and replenishing working capital of wholesale and retail trade companies.
The state will compensate 5.5% per annum of the bank's base rate, and the maximum financing limit for a group of related companies will be 1 billion UAH.
Sources: Serhiy Koretsky, Ministry of Economy, Cabinet of Ministers of Ukraine
