The government approved compensation of up to 80% of war losses for shipowners

The Cabinet of Ministers has approved a mechanism for state compensation for damage caused to civilian vessels as a result of Russian aggression and hostilities.

This was reported by the All-Ukrainian Agrarian Council with reference to Government Resolution No. 1248 of October 7, which was officially published on October 15.

The guarantees will apply to charterers, operators and owners of vessels under the Ukrainian or foreign flag that transport non-military cargo to or from open seaports of Ukraine.

The mechanism will operate while vessels are in the territorial sea of ​​Ukraine, on the Temporary Sea Route and in the waters of open ports.

Compensation will be available if the relevant damage is not covered by an insurance contract, insurance or P&I policy, in particular due to the exclusion of military risks and areas of hostilities.

The losses that may be compensated include the loss or structural destruction of the vessel, the costs of repairs and emergency rescue operations, loss of cargo, damage to third parties, removal of the vessel’s remains, elimination of pollution, as well as damage to the life and health of the crew and passengers.

The maximum amount of payment will be up to 80% of the estimated amount of damage. The assessment must be carried out by an independent appraiser, and the report must be reviewed by the State Property Fund.

To receive compensation, the shipowner must apply to the Ministry of Community and Territorial Development within 180 calendar days from the date of damage.

The guarantees will be financed from the state budget. Damage caused in 2026 will be compensated at the expense of budget allocations for 2027.