The Cabinet of Ministers has included Kyiv and Kyiv region in the list of high-risk territories under the state program for compensating property losses and insuring war risks for businesses. This gives businesses in the capital and the region broader access to the mechanism for compensating property damaged or destroyed as a result of the war. At the same time, for ordinary residents of the region, the new status does not mean the introduction of separate payments, benefits, or additional restrictions.
How this government decision will change the lives of residents of the capital and the region in practice was examined by UNN.
The Cabinet of Ministers adopted the relevant decision today, September 17, 2026. At the same time, the government expanded the list of property eligible for compensation, increased the maximum amount of reimbursement for businesses' insurance expenses, and simplified the procedure for receiving assistance. Prime Minister Serhii Koretskyi said the changes were related to Russia's ongoing strikes on civilian enterprises, warehouses, and logistics facilities.
"Businesses are suffering significant losses and need mechanisms that will allow them to resume operations more quickly after attacks," the head of the Cabinet of Ministers said.
What the high-risk territory status means
Including Kyiv and the region among high-risk territories does not in itself mean that they have been equated with areas of active hostilities or that the general legal regime is changing for residents. Here, primary attention should be paid to the Partial Compensation Program, which has been in effect since January 1, 2026. It provides for two main mechanisms: partial compensation for the value of property belonging to business entities that was damaged or destroyed as a result of artillery, missile, or drone strikes by the enemy, and compensation for part of the insurance premium under property insurance contracts covering war risks. It is administered by the Export Credit Agency.
Before the government's decision of September 17, the list of high-risk territories included:
- Dnipropetrovsk region;
- Donetsk region;
- Zaporizhzhia region;
- Mykolaiv region;
- Odesa region;
- Poltava region;
- Sumy region;
- Kharkiv region;
- Kherson region;
- Chernihiv region.
The government has now decided to add Kyiv and Kyiv region to this list. Therefore, businesses in the capital and Kyiv region will be able to use the property-loss compensation mechanism under the rules provided for high-risk territories.
Who can receive compensation
The program is intended for business entities—individual entrepreneurs and legal entities—with the exception of enterprises in the state and municipal sectors of the economy.
At the same time, it is worth remembering that compensation will not be начислена automatically simply because a business is located in Kyiv or the region. Under the current rules, a business must join the program in advance. Experts from the Export Credit Agency (ECA) explain that the mechanism is primarily aimed at compensating future potential losses. Therefore, an enterprise must be a program participant at the time its property is damaged or destroyed.
To participate in the compensation program, an enterprise submits an application to the Export Credit Agency and pays a fee. Under the current rules, it amounts to 0.5% of the total probable loss for the property declared under the program. At the same time, the maximum aggregate compensation for damage to or destruction of the property of one business entity during the program's term may not exceed UAH 30 million and may not be greater than the actual direct loss.
Thus, for example, if a company's production workshop, warehouse, or equipment is damaged after the business joins the program by a missile, drone, fragments of weapons, a blast wave, or a fire resulting from an attack, the company will be able to apply for compensation under the established procedure. The risks whose consequences are eligible for compensation include:
- missile strikes;
- drone attacks;
- strikes by aerial bombs and other weapons;
- the consequences of air defense and missile defense operations.
What property will be compensated for residents of Kyiv and the region
Along with including Kyiv and Kyiv region, the government significantly expanded the list of property covered by the program. The following items were added:
- fuel for operators of excise warehouses;
- motor vehicles used to transport or store fuel;
- agricultural machinery;
- trucks and trailers weighing more than 7.5 tonnes.
This is especially important for companies in the fuel, logistics and agricultural sectors. The government separately emphasized that fuel infrastructure remains one of the most vulnerable targets of Russian attacks, which is why it was decided to cover it more broadly under the state support mechanism. In addition, compensation was extended to movable business property that was damaged or destroyed during transit through high-risk areas. In other words, the mechanism is no longer limited exclusively to property permanently located in a particular area.
It should be noted that the program previously already covered, among other things, production and administrative buildings, warehouses, production equipment and engineering networks that belong to an enterprise and are used by it in its business activities.
What is changing with business insurance
Separately, the Cabinet of Ministers changed the mechanism for partial compensation of insurance premiums: if an enterprise independently insures its property against war-related risks, the state may compensate part of the cost of such insurance. Moreover, on September 17, the maximum amount of such compensation per business entity was increased from UAH 3 million to UAH 5 million per year in total under all insurance contracts. The government also simplified the requirements for contracts and documents, as well as the procedure for decision-making by the Export Credit Agency.
Another important innovation is that the insurance premium compensation mechanism now also applies to leased property. This is important for a significant number of companies in the capital that operate not in their own, but in rented offices, production facilities or warehouses. At the same time, the enterprise chooses the insurance company independently. There is no fixed state list of insurers eligible to participate in the program, but the contract must meet the established requirements.
How much demand is there for the program among entrepreneurs
According to government data as of September 17, compensation for damaged or destroyed property had been approved for 323 applicants. UAH 6.8 billion was allocated for this purpose.
Under the program for partial reimbursement of insurance premiums, businesses submitted 195 applications. At that point, the Export Credit Agency had approved partial compensation for 39 applications totaling more than UAH 56 million.
What the Cabinet of Ministers' new decision means for ordinary residents of Kyiv and the region
For a non-business individual who simply resides in Kyiv or Kyiv region, this Cabinet of Ministers' decision has not led to any fundamental direct changes. In this case, the status of a high-risk area can be used to receive compensation only within the business support program. It does not provide for the automatic assignment of social benefits and does not mean that a new form of compensation will be introduced for an apartment, private house or personal property destroyed by Russian military forces or damaged during the operation of air defense systems.
The decision likewise does not change the existing assistance mechanism for owners of damaged and destroyed housing. The "yeVidnovlennia" program remains in effect for residents of Kyiv and Kyiv region. Owners of housing affected by Russian aggression can report the damage and submit an application for compensation. Depending on the nature of the losses, the state provides funds for repairs, a housing certificate or monetary compensation for rebuilding a private house.
Will there be an indirect effect on the population
Although the Cabinet of Ministers' decision is primarily aimed at businesses, its consequences may also be felt by ordinary residents. If an enterprise is damaged after shelling, compensation payments may shorten the period during which the company is unable to operate. For businesses, this means an additional source of funds for repairing premises, purchasing equipment or restoring machinery.
Accordingly, the enterprise has more opportunities to retain its staff instead of cutting jobs, continue production, trade, or the provision of services, and resume operations more quickly after an attack. This is particularly relevant for the capital and Kyiv region, where a significant number of logistics centers, warehouses, retail enterprises, and other business facilities are concentrated.
Expanding the program to include fuel, vehicles, trucks, and other movable property should also reduce financial risks for companies that ensure the supply of goods and fuel.