Business will be able to attract up to UAH 1 billion to restore logistics infrastructure — EBA

A new mechanism for financing business recovery has been launched in Ukraine, which applies, in particular, to fuel, warehouse and logistics infrastructure.

This was announced by the European Business Association following a seminar with the Ministry of Economy, the Export Credit Agency and the National Bank of Ukraine.

The program provides for cheaper loans for the restoration of logistics and warehouse infrastructure, processing enterprises, as well as wholesale and retail trade enterprises.

The funds can also be used to increase the resilience of businesses to possible attacks – in particular, for the construction of protective structures, underground storage facilities and fuel tanks.

The maximum amount of the loan covered by state support is UAH 1 billion. The minimum amount is UAH 100 million, and for territories where hostilities are possible – UAH 30 million. The state will compensate for 5.5 percentage points of the base interest rate.

47 banks have already been involved in the program, but they are currently adapting their loan products to the new conditions. Companies with foreign beneficiaries will also be able to apply for financing provided they meet the established criteria.

Separately, the mechanisms for compensation for losses and insurance of war risks through the Export Credit Agency have been updated.

Kyiv and the Kyiv region have been added to the relevant program, and the list of property that may be subject to compensation has been expanded to include fuel in excise warehouses, transport for its transportation, agricultural machinery and freight transport weighing more than 7.5 tons.

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The procedure for confirming losses has also been simplified. Now, for damaged or destroyed property, it is not necessary to wait for data to be entered into the Register of Damaged and Destroyed Property and an inspection by a local commission. Damage can be confirmed by an independent appraiser. According to the ECA, previously the formation of the necessary package of documents could take 4-5 months.

The maximum amount of insurance premium compensation has also been increased to UAH 5 million per business entity per year.

In parallel, the government is working on a larger-scale mechanism for compensation for war losses. Coverage of up to $10 million per company or related group is being considered.

Possible sources of its financing include a 1 percentage point increase in VAT, 2% contributions from participants, and funds from international donors.

This model is still at the consultation stage. Separate legislative and budgetary decisions are required for its possible launch in early 2027, the EBA noted.