War-Risk Insurance Mechanism Launches on January 1, 2026
From the beginning of 2026, businesses in frontline regions will be able to receive direct reimbursements of up to UAH 10 million; across the country there will be partial coverage of insurance premiums. Participation is voluntary — the contribution is 0.5% of probable losses.
By Oleg Bazylewicz
December 3, 2025 · 2 min read
Start of the mechanism
From January 1, 2026, Ukraine will introduce a mechanism for insuring property against war risks. It provides for direct payments to businesses in frontline regions and partial coverage of insurance premium costs for companies across the country.
We are launching a mechanism that gives business a clear and predictable model of action: insure property by participating in the program — and have a guarantee of compensation if the enterprise is harmed
– Andriy Teliupa, Deputy Minister of Economy, Environment and Agriculture of Ukraine
Eligibility for payments
Compensation will be available only to companies that are participants in the program at the time the property is damaged as a result of Russia's armed aggression. The right applies to objects in oblasts with elevated risk: Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv (excluding temporarily occupied territories).
The maximum amount of compensation will be up to UAH 10 million taking into account affiliated parties, and the payment cannot exceed the actually confirmed losses.
Participation in the program is voluntary. To join, an enterprise pays a one-time contribution of 0.5% of the total amount of probable loss for all property submitted to the program for damage or destruction.
Insurance premium compensation
Enterprises will also be able to receive partial reimbursement of the insurance premium for property policies against war risks concluded with insurance companies. The state will cover the portion of the rate that exceeds 1%, up to UAH 1 million per contract.
For example, if the policy rate is 6%, the state compensation will be the 5% difference but not more than the established limit.
To obtain the premium reimbursement, you must choose an insurer, conclude a contract and pay the premium, after which submit an application with a package of documents to the Export-Credit Agency. The decision on payment and the transfer of funds must be made within 30 days.
- On November 24, the Cabinet of Ministers adopted a resolution on partial compensation of the value of companies' property damaged or destroyed as a result of Russia's armed aggression.
