ISTANBUL

Ukraine’s Cabinet of Ministers introduced a mechanism to compensate for war-related risks to businesses, Prime Minister Yulia Svyrydenko announced following a government meeting Friday.

Enterprises in high-risk or front-line regions will be eligible to receive up to 10 million hryvnias ($250,000) in compensation for damaged or destroyed property resulting from attacks by Russia, Svyrydenko said on Telegram.

“After recording the losses and submitting documents to the Export Credit Agency, the state compensates part of the losses within this limit,” she said.

She added that the state will also subsidize part of the insurance premiums under war risk contracts to lower tariffs for businesses to 1%, using a model similar to the “5-7-9%” lending program.

“For example, if an enterprise in the Rivne region insures property for UAH 50 million ($1.25 million) at a rate of 3%, the state will cover two-thirds of the insurance cost — but no more than UAH 1 million ($25,000) per year,” she explained.

The program covers damages caused by missile and drone strikes, debris, fires, explosions and shock waves.