What happened
The head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, published on Telegram data from the Ministry of Economy showing low activity in the new program for compensation of property losses and insurance premiums for businesses. Since the program's launch, 13 applications to participate have been submitted, only three business entities have been included in the program; four applications have been submitted for compensation of insurance premiums.
"The program did not take off. It is not working and we need to sound the alarm to change the design. I call on the government"
— Danylo Hetmantsev, head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy
Details of the mechanism
The Cabinet of Ministers launched a mechanism of direct compensation for losses for enterprises in high-risk regions (Dnipropetrovsk, Donetsk, Zaporizhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson and Chernihiv regions). The maximum compensation amount is up to UAH 10 million. For the rest of the country, a model similar to the "5-7-9%" loans is envisaged — the state will compensate part of the cost of insurance premiums to reduce the rate for businesses to approximately 1%.
Why the program isn't delivering results
Expert conclusions and social signals converge: the low number of applications is linked not only to a lack of need, but to constructive design flaws. According to the Ministry of Economy and practitioners, the problems may include:
- a complicated application procedure and lengthy verification that reduce the speed of reimbursements;
- insufficient interaction with banks and insurers, meaning businesses do not see real practical benefits;
- a lack of a targeted information campaign — many enterprises simply do not know how to use the mechanism;
- market rates for war-risk insurance and the lack of competition in the insurance products market.
Social proof: the annual survey of the European Business Association at the beginning of 2026 showed that coverage of war risks remains one of the key priorities for businesses — therefore demand exists; the issue is implementation.
What needs to change — practical steps
For the program to start working, analysts and businesses suggest a number of practical changes that do not require complex legislative transformations but could improve effectiveness:
- simplify and digitalize the procedures for submitting and verifying applications to reduce wait times;
- establish clear SLAs for verifications and payments — this will build trust in the mechanism;
- more actively involve insurers and banks in developing products that actually work in risky regions;
- conduct an information campaign in the regions with examples of successful cases and step-by-step instructions for enterprises.
Consequences for business and the state
If the design is not fixed now, the state risks losing the chance to secure the investment and operational resilience of enterprises in frontline and affected regions. This affects not only individual companies but also employment, logistics and tax revenues. Conversely, quick technical adjustments and transparent mechanisms can restore trust and become a marker that the state can support business even in the most difficult conditions.
Conclusion
The paradox is that the program was created for the needs of business but does not respond to their actual logic of operation. Now it's up to the government: declarations must be transformed into concrete processes with measurable results. The question is not about the idea — it exists and is important — but about its implementation. Will the system change in time before businesses draw conclusions in favor of mothballing or relocation?
