COMPENSATION FOR DAMAGES CAUSED BY RUSSIA’S MILITARY AGGRESSION

The government and parliament are working to develop mechanisms to compensate for losses incurred by citizens and businesses arising as a result of the armed aggression of the Russian Federation against Ukraine.

For that reason, the Cabinet of Ministers of Ukraine adopted the Resolution as of 20 March 2022 No. 326 “On approval of the Procedure for determining the damage and losses caused to Ukraine as a result of armed aggression of the russian federation”, the Resolution as of 26 March 2022 No. 380 “On collection, processing and accounting information on damaged and destroyed real estate as a result of hostilities, terrorist acts, sabotage caused by the military aggression of the russian federation” and the Resolution as of 19 April 2022 No. 473 “On approval of the Procedure for urgent work to eliminate the consequences of armed aggression of the Russian Federation with damage to buildings and structures”, which provide a system of notification of damages and their fixation.

In case of damage or destruction of property, a legal entity may submit relevant information to the national police to initiate criminal proceedings. Legal entities can also apply to the executive bodies of village, city councils, and in their absence – to military administrations, which make decisions on the inspection of damaged objects. Unfortunately, as of June 2022, although the opportunity to submit information by legal entities through the portal “Diia” is prescribed by the Resolution of the Cabinet of Ministers of Ukraine as of 26. March 2022 No. 380, yet in practice it is not implemented.

In accordance with the Resolution of the Cabinet of Ministers of Ukraine as of 20 March 2022 No. 326 while determining the economic losses of enterprises, the value of lost, destroyed or damaged property is particularly estimated. Regional, Kyiv city state administrations (for the period of martial law – military administrations) are responsible for determining the damage and losses of enterprises that are located in respective regions.

Fixations of damage or destruction of buildings caused by the armed aggression of the Russian Federation is carried out in accordance with the Resolution of the Cabinet of Ministers of Ukraine as of 19 April 2022 No. 473. Inspection of damaged objects is carried out by the decision of the executive bodies of village, city councils, and in their absence – military administrations through a commission inspection, which includes (if possible) authorized representatives of the owner of the object. 

The results of the commission inspection are presented in an act of inspection of the damaged object, which, in particular, states:
– information on the extent and probable causes of damage (if identifiable);
– information on the repair and restoration works performed on the site as of the date of the inspection;
– conclusions on the need for a technical inspection.

Photo-fixation materials of the object, which testify to the nature and extent of the destruction, must be attached to the commission inspection report. The commission forms an act of commission inspection in electronic form on the portal “Diia”. Acts of commission inspection are transferred to the holder of the State Register of property damaged and destroyed as a result of hostilities, terrorist acts, sabotage caused by military aggression of the Russian Federation, within one month from the date of its creation. If possible, the authorized body shall notify the owner of the object in writing of the results of the commission survey by sending a copy of the commission act within 3 calendar days from the date of drawing up such an act or by sending it through the portal “Diia”.

As of June 2022, the draft law No. 7198-IX is being prepared for the second reading, which provides for a mechanism of compensation to citizens of Ukraine for damage and destruction of housing. Such compensation may be provided in the form of monetary compensation, financing of real estate or financing of construction work to restore the damaged common property of an apartment building. The draft law No. 7198-IX will regulate the issues of the source of funding for compensation, the system of filing applications by victims.