War-risk insurance coverage expanded for Kyiv businesses amid intensified Russian attacks — what it entails

For entrepreneurs in Kyiv and Kyiv region, the opportunities to insure property against war risks have been expanded amid the intensification of attacks by the russian federation. This was reported by the Ministry of Economy of Ukraine on September 29, UNN reports.

Details

According to the Ministry of Economy, the government is expanding programs to protect and finance businesses:

• war risk insurance. The updated mechanism for partial compensation of insurance premiums has been extended to Kyiv and the region, as well as to the protection of the entire technological chain of the fuel sector. The list of property that can be insured has also been expanded;
• the changes will also apply to concessional lending to increase the resilience of critical and industrial infrastructure. The funds may be used, in particular, to build underground reservoirs and deepen technological equipment.. 

An express survey on a special budget fund to support business recovery, which the Ministry of Economy is working to establish, showed, as stated, that "81% of respondents consider the current compensation limit of UAH 30 million insufficient". "63% support coverage of up to $10 million, while another 24% consider coverage of up to $5 million sufficient. Regarding the fund's sources of financing, 52% preferred a model in which VAT is one of the sources of funding. At the same time, participants support a mixed model of financing the fund with a contribution from businesses, rather than financing exclusively at the expense of taxpayers," the post said.

Let us recall

The business business activity expectations index fell to 48.3 in August. Entrepreneurs cited losses from attacks, the blockade of ports, expensive fuel, and a labor shortage.