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Ukraine cannot directly compensate businesses for losses caused by Russian attacks because the state lacks the necessary financial resources, Verkhovna Rada Finance Committee Chairman Danylo Hetmantsev said in an interview with RBC-Ukraine.
According to him, the government should instead expand access to state-backed lending programs and increase funding for war-risk insurance.
State-backed loans for large businesses
Hetmantsev said direct business losses are already roughly equivalent to Ukraine’s annual GDP, making full compensation impossible for the state budget.
“At the same time, the state must subsidize part of the interest rate and provide guarantees,” he said.
He added that large businesses are currently seeking expanded access to government financing, while limited state resources mean small and medium-sized businesses cannot receive the same level of support.
Discussions have already taken place with the prime minister and economy minister on expanding the 5-7-9% lending program.
According to Hetmantsev, the financing needs of companies such as Epicentr and Nova Poshta are measured in billions of hryvnias, and they are prepared to borrow those sums from banks at affordable rates.
War-risk insurance needs more funding
Hetmantsev also called for a major expansion of the state-backed war-risk insurance program, which he said currently operates only on a limited scale.
The main problem is the UAH 30 million compensation cap, which is too low for large retail and logistics companies.
The program currently has around UAH 1 billion allocated to it, but Hetmantsev believes funding should be increased tenfold to thirtyfold, reaching UAH 10–30 billion.
The Finance Committee is now awaiting proposals from the Ministry of Economy and is expected to support an expansion of the program.
Ukraine’s wartime budget remains chronically deficit-ridden and heavily dependent on international financial assistance, while more than UAH 2 trillion in domestic tax revenues is spent annually on defense and security. Against this backdrop, the government is expected to focus on targeted spending and supporting businesses that continue generating tax revenue.
