The state will compensate up to 80% of wartime losses to civilian shipping: who will receive the funds and how to apply

The state will compensate up to 80% of certain losses incurred by civil shipping that are not covered by insurers. The relevant decision was adopted by Ukrainian government officials at the beginning of the month. 

UNN explains the conditions under which applications for payments may be submitted, and outlines the required documents and the deadlines for submitting them. 

The state will compensate up to 80% of war-related losses: what the government’s decision provides

The Cabinet of Ministers approved the procedure for state guarantees by Resolution No. 1248 dated October 7, 2026, which was published on October 15. Its aim is to support maritime transportation amid attacks by the russian federation on ports and vessels.

Insurance for vessels against war risks is becoming more expensive, while insurers do not cover some of the damage. Therefore,  the state is offering non-repayable compensation, but it must be supported by documents. Payments depend on the budget.

Who can receive compensation for war-related losses

Owners, operators, and charterers of seagoing vessels and inland-waterway vessels flying the flag of Ukraine or a foreign state may apply for state guarantees. A charterer hires a vessel, while an operator ensures its operation. The application for compensation is submitted by the shipowner. The vessel must transport non-military cargo to or from an open Ukrainian seaport. No vessel traffic ban may be in effect at the respective port. The program does not cover housing, vehicles, or other losses incurred by individuals.

What losses the state will compensate

Under the resolution, claims may be made for damage resulting from the loss of a vessel or its constructive total loss when repair is impractical. Compensation is also provided for the costs of eliminating damage that rendered the vessel unseaworthy, including emergency rescue operations.

In addition,  compensation may be provided for the loss of or damage to cargo, damage to third parties resulting from a collision, the removal of wreckage and marking of the accident site, environmental cleanup, and pollution fines. The list also includes damage to the life and health of passengers and crew members, as well as the costs of their repatriation.

An independent assessment is required for the loss of a vessel, its structural damage, and damage to third parties resulting from a collision. It is commissioned by the shipowner, the owner of the damaged property, or a person authorized by them. Loss of cargo and certain actually incurred expenses are confirmed by documents without such an assessment.

Under what conditions can 80% compensation be received

The damage must occur while the vessel is in Ukraine’s territorial sea, within the Temporary Maritime Route, or in the waters of an open Ukrainian port where vessel traffic is permitted. Damage is taken into account from the date Resolution No. 1248 enters into force.

At the time of the incident, the shipowner must have a valid insurance contract or a P&I policy, which generally covers liability to third parties. However, the relevant war risk must be excluded from the insurance coverage, or the coverage must not extend to areas of hostilities, navigation restrictions, or military strikes. Assistance will not be granted without a valid insurance contract or P&I policy.

For losses assessed by an independent specialist, the maximum payment is 80% of the assessed amount. For example, for damage amounting to UAH 10 million, up to UAH 8 million may be paid. The review of the report is ensured by the State Property Fund, while the actual payment depends on the budget.

How to apply for compensation: step-by-step instructions

Step 1. Document the circumstances of the incident. Collect confirmation of the date, location, nature of the attack, and damage to the vessel and cargo.

Step 2. Check the insurance coverage. Determine whether the contract or P&I policy was valid and which specific war risks it does not cover. Prepare a duly certified copy.

Step 3. Determine the amount of the loss. For the types of damage provided for by the resolution, commission an independent assessment; for other losses, collect the cargo documents and confirmation of the actual expenses incurred.

Step 4. Prepare the application. The application letter is drawn up in free form and describes the circumstances and date on which the damage was caused. The document is signed by the shipowner.

Step 5. Submit the package to the Ministry for Development. The documents may be sent by mail to the ministry’s address or submitted electronically. Electronic materials must include scans or photocopies of the originals of paper documents and a qualified electronic signature or an advanced electronic signature based on a qualified certificate. Save the confirmation of submission.

The resolution does not provide for a single application through Diia or a special online form: the documents are addressed directly to the ministry. In the paper version, it is advisable to include a description of the contents.

What documents are required to receive compensation

The following must be submitted to the Ministry for Development:

• a letter-application signed by the shipowner, describing the event and the date the damage occurred;
• a certified copy of the insurance contract or P&I policy; 
• materials confirming the relevant type of loss. 

The insurance document may be certified by a notary, a consular institution, the insurer — a party to the contract, or the relevant P&I club.

Depending on the nature of the damage, the following may also be required:

• an appraiser’s report; 
• cargo documents and evidence of its loss or damage; 
• documents regarding the costs of removing debris, eliminating pollution, paying fines, health-related damage, and repatriation.

All documents in a foreign language must be accompanied by a Ukrainian translation whose accuracy has been certified in accordance with legislation on notarial matters. Check that the scans are legible and complete.

How much time is available to submit an application and when the money will be paid

The shipowner must apply to the Ministry for Development no later than 180 calendar days from the date the damage was caused. The period does not depend on the completion of repairs or the assessment.

If the Ministry for Development identifies violations of the requirements for the submitted materials or finds that the applicant does not meet the established conditions, it will notify the applicant in writing of the refusal within 10 working days from the date it receives the documents. The resolution does not specify a clear payment date for positively reviewed applications.

Compensation will be transferred in hryvnias to an account at a bank registered in Ukraine. An important nuance: losses caused in 2026 will be financed from the 2027 state budget, if the relevant funds are provided for in it. Immediate payment is not предусмотрено.

Can compensation be refused, and what should be checked before applying

Refusal is possible if the vessel, route, or applicant does not meet the conditions of the resolution, the procedure for preparing the documents has been violated, or the claimed damage has not been properly confirmed. It is also necessary to check that the insurance is valid and to meet the 180-day deadline.

The program has restrictions concerning vessels whose owners, shipowners, or related persons have the ties to russia and belarus specified in the resolution, as well as concerning persons subject to Ukrainian sanctions. An exception is established for citizens of these states who permanently and lawfully reside in Ukraine. Compensation is also not available to a shipowner who has already received insurance compensation under the mechanism of Cabinet of Ministers Resolution No. 1140 dated November 2, 2023.

Before applying, one should verify the date and location of the attack, the port’s status, the nature of the cargo, the insurance contract, the documents relating to the losses, and the shipowner’s details. A complete package does not guarantee payment of exactly 80% of the losses. Before applying, one should also clarify with the Ministry for Development the current channels for submitting electronic documents and keep copies of all submitted materials.

A reminder

In June 2026, Ukrainians were allowed to apply for compensation for new categories in the Register of Damages.