What are the first steps a business should take following damage to its property during the war?

First and foremost, the business should document the damage, collect all relevant evidence, prepare supporting documentation, and, where necessary, commission an independent valuation of losses. This evidence base is used for insurance claims as well as for state or international compensation mechanisms.

How should damaged or destroyed assets be recorded in the accounts?

The business must notify the tax authorities of any loss of documents (if applicable), restore the required accounting records, draw up an inventory, recognise losses, and write off the destroyed assets in accordance with applicable accounting and tax regulations.

What options are available to an employer if the business has ceased operations due to damage?

Possible measures include declaring a shutdown, introducing remote work arrangements, temporarily reassigning employees to other positions, granting leave (paid or unpaid), and suspending employment contracts.

Are there any government support schemes for businesses affected by the war?

Various mechanisms are available, including reconstruction grants, insurance schemes, and planned tax and customs incentives aimed at helping businesses rebuild their production processes and offset losses.

Why does a manager need a checklist?

A checklist helps managers prepare key documents and define a course of action in advance so that, in the event of an emergency, losses can be promptly recorded, the compensation process initiated, and legal and financial risks minimised.

Business guide: How to respond to property damage caused by war

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How Businesses Should Act in the Event of Property Damage Due to Armed Aggression

Key updates introduced in Version 4.0 include:

Updated section on the Export Credit Agency (ECA) programs to reflect the latest regulatory changes. The guide incorporates amendments introduced by the Cabinet of Ministers Resolution No. 1157. As a result, Kyiv and Kyiv region have now been added to the list of territories where businesses may qualify for compensation for damaged or destroyed property.
Updated list of assets eligible under the program. Coverage has been extended to include certain movable property while in transit through high-risk areas. In addition, documentation requirements have been simplified, as the Export Credit Agency (ECA) can now verify part of the required information through state registers.
Expanded scope of compensation for war-risk insurance premiums. The maximum annual compensation amount has been increased from UAH 3 million to UAH 5 million. In addition, the program now covers property in which a business has an insurable interest, including leased assets.
Added practical guidance on the use of Export Credit Agency (ECA) support mechanisms, the preparation of required documentation, verification of ownership rights and evidence of property damage, as well as assistance with submitting and managing compensation claims.
Updated information on financing for recovery and development projects, particularly in the areas of logistics, manufacturing, and trade. Eligible loans under these programs provide for interest rate compensation of 5.5 percentage points, while the minimum loan amount is UAH 100 million, or UAH 30 million for businesses operating in frontline regions.
Revised and updated recommendations to reflect the latest legislative changes, practical experience with compensation mechanisms, and newly introduced business support instruments.

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Vira Savchenko

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Inventory — a procedure for verifying the actual existence of assets and recording changes resulting from damage to or destruction of assets.

Compensation for losses — the process of obtaining financial compensation for damaged or destroyed property through state, international, or insurance mechanisms.

Independent loss assessment — the valuation of damaged property by a certified expert for the purposes of subsequent compensation or submission of documents to a court or insurance company.

Suspension of the employment contract — the temporary suspension of duties by both the employee and the employer in situations where the business is unable to operate due to war damage.

Downtime — an officially recognised status under which a company’s operations are suspended for reasons beyond the employee’s control, including damage to production facilities.

Write off of assets — an accounting transaction that records the derecognition of property destroyed or lost as a result of hostilities.

Insurance mechanisms — specialised insurance instruments that enable businesses to obtain compensation for losses resulting from property damage, including war related risks.

Documenting damage — the process of collecting evidence, including photographs, videos, inspection reports, and documentation from relevant authorities, required to substantiate the occurrence and extent of losses.

Manager’s checklist — a ready to use list of actions and documents that should be kept readily available to ensure a prompt response to property damage and the effective initiation of compensation procedures.

How Businesses Should Act in the Event of Property Damage Due to Armed Aggression

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FAQ (Frequently Asked Questions)

Glossary (Terms and Definitions)