The government expanded war risk insurance for businesses: compensation increased to UAH 5 million

The Cabinet of Ministers has expanded the war risk insurance program for Ukrainian businesses. The maximum amount of insurance premium compensation has been increased from UAH 3 million to UAH 5 million per year, and the list of property covered by the mechanism has been expanded.

Fuel, transport for its transportation, agricultural machinery, trucks and trailers have been added to it. The program will also apply to leased property.

What will change for business

The updated program provides for simplification of requirements for insurance contracts to make it easier for enterprises to apply for compensation.

In addition, Kyiv and the Kyiv region have been included in the territories of increased risk. The expansion of the list is associated, in particular, with threats to fuel infrastructure and logistics capacities.

At the same time, sea vessels have not been included in the list of property subject to compensation.

Preferential loans up to UAH 1 billion

The government has also expanded financial support for large projects in the fuel sector, logistics, trade and processing industry.

Preferential loans can be used to restore fuel and warehouse infrastructure, modernize processing enterprises, as well as replenish working capital of wholesale and retail enterprises.

The state will compensate 5.5% per annum of the bank’s base rate. The maximum lending limit for a group of related companies will be UAH 1 billion.

The exact timing of the introduction of changes is not specified in the notification.

Maritime transportation remains outside the compensation program for the time being. Representatives of the agricultural business have previously called for the restoration of state guarantees for charterers, operators and ship owners against the background of risks for maritime exports.