As part of a project to support affected agricultural producers, experts from the Ukrainian Agri Council (UAC), in partnership with the international humanitarian organization Mercy Corps, have prepared an analytical digest on Resolution No. 1541 of the Cabinet of Ministers of Ukraine, which defines the procedure for providing partial compensation for the cost of property destroyed or damaged as a result of armed aggression by the Russian Federation, as well as compensation for insurance premiums under insurance contracts against military risks.

The resolution was adopted on November 28, 2025, came into force on November 29, and will apply from January 1, 2026. It introduces two separate state mechanisms for business support that are of direct importance to agricultural producers operating in conditions of military risk.

The first mechanism provides for partial compensation for the cost of property destroyed or damaged as a result of missile strikes, shelling, explosions, or fires. This applies to production and storage buildings, engineering networks, and equipment located in high-risk regions. It is important to note that compensation will only be provided to enterprises that are already participants in the program at the time of damage to property due to armed aggression by the Russian Federation, i.e., this procedure is actually designed to insure against future loss (damage) of property. The maximum amount of compensation is limited to UAH 10 million per enterprise, including related parties.

The second mechanism concerns partial compensation of insurance premiums under insurance contracts against military risks. It allows farmers to reduce the actual cost of insuring property against missile strikes, explosions, and other consequences of war. Compensation will be paid after the expiration of the insurance contract, regardless of whether an insured event has occurred or not. The maximum amount of such compensation is UAH 1 million per year for one enterprise together with related parties.

The digest prepared by UAC experts explains the conditions for participation in both programs, the circle of recipients, the property subject to compensation, as well as the main risks associated with limited budget financing. The document will help agricultural producers navigate the new state support instruments and assess the feasibility of participating in compensation and military risk insurance programs.

• To download or view the entire document, follow the link: https://drive.google.com/file/d/1rlhAiRNFPqG-j05ohvSj8KdMDAKB0fD5/view?usp=sharing

As a reminder, the Ukrainian Agri Council (UAC), in partnership with the international humanitarian organization MERCY CORPS, has opened a legal advice hotline to provide legal and accounting advice to agricultural producers in the affected regions.

• To receive advice, submit your request in electronic form at: https://forms.gle/v56UzTAsrD9Zrx998
• For further questions, please call the legal advice hotline at: +38 067 522-03-43

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MERCY CORPS is an international humanitarian organization that works in more than 40 countries around the world and provides assistance to people suffering from disasters, wars, poverty, and the effects of climate change.