The Cabinet of Ministers of Ukraine has expanded its damage compensation, war risk insurance, and preferential lending programs to allow businesses to borrow up to 1 billion hryvnias to restore war-damaged infrastructure.
According to the press service of the Ministry of Economy and Environment, the updated framework enables Ukrainian companies to secure financial support for both rebuilding destroyed assets and enhancing the physical resilience of their facilities.
The Cabinet of Ministers serves as the supreme body of state executive power in Ukraine, directing government administration and economic emergency measures. The Ukrainian hryvnia is the national currency of Ukraine, managed by the central bank during the ongoing war.
Loan terms and financial limits
Under the revised rules, the maximum loan amount available is capped at 1 billion hryvnias per borrower. The standard minimum limit is set at 100 million hryvnias, though this threshold drops to 30 million hryvnias for projects located in areas of active or possible combat.
Participating commercial banks cannot charge a base interest rate exceeding 18 percent per annum. To ease borrowing costs, the state will compensate 5.5 percentage points of the rate using funds from the state budget.
The Ministry of Economy and Environment has also proposed creating a dedicated state budget fund to finance recovery work and cover war risk losses. Furthermore, officials expanded the geographic coverage of the protection measures, officially including the capital city of Kyiv and the surrounding Kyiv Oblast among high-risk zones while updating compensation rules for property situated in or transiting through these areas.
Eligible sectors and infrastructure protection
The updated rules expand the categories of covered property while accommodating various business ownership models and insurance interests. For the fuel sector, protection extends beyond gas station buildings and equipment to encompass the entire supply chain, including fuel storage tanks, bulk fuel supplies, and transport vehicles used for distribution.
Preferential financing can also be allocated toward structural enhancements rather than simple repairs, such as constructing underground storage tanks and placing key technical equipment below ground level. The program covers distributed generation units, fuel and warehouse logistics, processing industries, and working capital top-ups to replace destroyed stock.
Distributed generation refers to small-scale power units operating near electricity consumers. The technology has become central to maintaining energy supplies across Ukraine following widespread attacks on central power stations.
Budget proposals and economic losses
Prime Minister Serhiy Koretskyi stated that the government proposed raising value-added tax to 21 percent from the current 20 percent in the draft 2027 state budget to launch a business war risk insurance program. Koretskyi said the government and international partners aim to create a general fund of around 5 billion US dollars to deliver rapid insurance payouts to businesses for war-related damage.
Minister of Economy and Environment Oleksandr Kravchenko reported that persistent enemy strikes on domestic infrastructure and resulting forced enterprise shutdowns cost the Ukrainian economy up to 2 billion hryvnias every hour.
Value-added tax is a general consumption tax applied to goods and services at each stage of production. It provides a major portion of national tax revenue, supporting public finances during crisis response and reconstruction efforts.
