--- title: "Cabinet of Ministers Prepares Expansion of the Military Damage Compensation Program: Kyiv and Gas Stations to Receive New Status" description: "The Ministry of Economy has submitted to the Cabinet of Ministers amendments to Resolution No. 1541: Kyiv may be included in the military damage compensation program, and the rules for gas stations will be changed. In parallel, an insurance fund for businesses and a VAT increase to 21% in the 2027 budget are under discussion." date: 2026-09-16T08:50:02.000Z lang: en url: https://xab.info/en/posts/cabinet-of-ministers-amendments-1541-military-damage-compensation-business tags: [ukraine, war-economy, vat-increase, business-compensation, insurance-fund, fuel-sector, kyiv, cabinet-of-ministers] publisher: "XAB.info" --- # Cabinet of Ministers Prepares Expansion of the Military Damage Compensation Program: Kyiv and Gas Stations to Receive New Status ![Burned-out gas station with smoke: illustration of war damages covered by the expanded compensation program](https://xab.info/media/2026/09/16/kabmin-izmeneniya-1541-kompensatsiya-voennyh-ubytkov-biznesa/kabmin-izmeneniya-1541-kompensatsiya-voennyh-ubytkov-biznesa-1.webp) ## 🎯 Key Points - The Ministry of Economy has prepared amendments to Cabinet of Ministers Resolution No. 1541 on the compensation of military losses and submitted them to the government - Kyiv may be included in the program as a high-risk territory; the rules for gas stations are planned to be changed - The creation of a special insurance fund for businesses is under discussion; to finance it, a VAT increase to 21% in the 2027 budget is being considered - Economy Minister Kravchenko estimates the potential losses of businesses from Russian strikes at 10 billion dollars Ukraine's Ministry of Economy and Environment has confirmed that it has prepared and submitted for government review amendments to Cabinet of Ministers Resolution No. 1541, which governs the mechanism for partial compensation of the cost of property and insurance premiums against military risks. The ministry said this in response to a request from RBC-Ukraine. According to the ministry, the updated version of the document may cover new regions β€” in particular, Kyiv is to be included in the program as a high-risk territory β€” and will also significantly expand support for the fuel sector, for which the rules for compensating losses are reportedly to be changed. At the time of writing, the document was still under government review; the official text of the approved amendments will be published on the Cabinet of Ministers' website after the corresponding resolution is adopted. ### Kyiv as a High-Risk Territory According to information obtained from several sources, a key innovation in the draft amendments to Resolution No. 1541 may be the recognition of Kyiv as a territory of heightened military risk. This means that the capital's businesses, which previously did not fall under the program's partial compensation terms, will be entitled to reimbursement of part of their losses from destruction and insurance premiums. For ordinary residents and entrepreneurs, this could mean access to financial support mechanisms that until now have been available mainly in frontline and occupied regions. However, experts emphasize that the specific parameters β€” the size of compensation, the list of covered risks, and the procedure for submitting applications β€” will be fixed only after the official signing of the resolution. ### The Fuel Sector and Gas Stations: New Rules A separate block of amendments concerns the fuel sector. As follows from data obtained from the ministry, the terms of participation in the compensation program are planned to be reviewed for gas stations and other enterprises in the fuel segment. Against the backdrop of ongoing strikes on energy and fuel infrastructure recorded across the country, expanding support for this sector is seen as a measure to ensure the stability of logistics chains and prevent fuel shortages. The image of a destroyed facility with a distinctive sign and plumes of smoke, accompanying the news, vividly illustrates the scale of damage that infrastructure is subjected to in the conditions of armed conflict. ### Special Insurance Fund and the Financing Question In parallel with the refinement of Resolution No. 1541, the Cabinet of Ministers is considering the possibility of creating a special insurance fund to help businesses suffering from attacks by the Russian Federation. To fund this fund, sources say, it is planned, among other things, to increase the value-added tax rate. A likely VAT increase is already built into the draft state budget for 2027: the government proposes raising the rate to 21 percent. At the same time, implementing this measure will require amending existing legislation, which means an additional stage of parliamentary procedures. Economy Minister Alexander Kravchenko previously explained that, due to Russian strikes, Ukrainian businesses could incur total losses of around 10 billion dollars, making the question of systematic financing of compensation and insurance mechanisms critically important. ### Contradictory Data The provided sources contain no direct discrepancies in figures or dates, however, there are nuances that require attention. On the one hand, the Ministry of Economy states that the program "may cover new regions," which is formulated as a prospect rather than an already adopted decision. On the other hand, a number of specialized publications (zn.ua, my.ua) interpret the preparation of the amendments as a de facto intention to include specifically Kyiv in the list of high-risk territories, using more categorical rhetoric. In addition, the question of raising the VAT to 21 percent appears in the context of the 2027 budget draft, i.e., as a planned measure rather than an already effective rate. Thus, at the current moment, neither the expansion of the program's geography, nor the change of rules for gas stations, nor the creation of the insurance fund has entered into force and remains at the review stage. The difference between "a draft has been prepared" and "a resolution has been adopted" is significant and must be taken into account when interpreting the news. ### What Comes Next According to the Ministry of Economy and Environment, after the review by the Cabinet of Ministers is completed, the official text of the resolution with the approved amendments will be published on the Cabinet of Ministers' website. Until that time, businesses are advised to monitor publications on the government portal and not to build financial plans based on preliminary wording. The creation of the insurance fund and the VAT increase, in turn, will require approval by the Verkhovna Rada, which may take additional months. In conditions where, according to Minister Kravchenko's estimate, total military losses of businesses are approaching 10 billion dollars, the speed and completeness of implementing compensation mechanisms remain one of the key factors of the sustainability of the Ukrainian economy in 2026–2027. ## πŸ” Fact-Check Verification - [Insuring businesses against war: Kyiv to be included in the program, rules for gas stations to be changed](https://www.rbc.ua/ukr/news/strahuvannya-biznesu-vid-viynu-kiyiv-hochut-1789548375.html) - ΠŸΠΎΠ΄Ρ‚Π²Π΅Ρ€ΠΆΠ΄Π°Π΅Ρ‚ Ρ„Π°ΠΊΡ‚ направлСния ΠΈΠ·ΠΌΠ΅Π½Π΅Π½ΠΈΠΉ ΠΊ ΠΏΠΎΡΡ‚Π°Π½ΠΎΠ²Π»Π΅Π½ΠΈΡŽ β„–1541, Π²ΠΊΠ»ΡŽΡ‡Π΅Π½ΠΈΠ΅ КиСва ΠΈ измСнСния для АЗБ - [Kyiv may be recognized as a high-risk territory: the government is preparing support measures for ...](https://zn.ua/ECONOMICS/kiev-mohut-priznat-territoriej-povyshennoho-riska-pravitelstvo-hotovit-mery-podderzhki-dlja-biznesa.html) - ΠŸΠΎΠ΄Ρ‚Π²Π΅Ρ€ΠΆΠ΄Π°Π΅Ρ‚ ΠΏΠΎΠ΄Π³ΠΎΡ‚ΠΎΠ²ΠΊΡƒ ΠΌΠ΅Ρ€ ΠΏΠΎΠ΄Π΄Π΅Ρ€ΠΆΠΊΠΈ ΠΈ статус КиСва ΠΊΠ°ΠΊ Ρ‚Π΅Ρ€Ρ€ΠΈΡ‚ΠΎΡ€ΠΈΠΈ ΠΏΠΎΠ²Ρ‹ΡˆΠ΅Π½Π½ΠΎΠ³ΠΎ риска - [A new status is being prepared for Kyiv: how it will affect ordinary residents](https://my.ua/news/cluster/2026-09-12-kievu-gotoviat-novyi-status-kak-povliiaet-na-prostykh-gorozhan) - Π”ΠΎΠΏΠΎΠ»Π½ΠΈΡ‚Π΅Π»ΡŒΠ½Ρ‹ΠΉ контСкст ΠΎ влиянии Π½ΠΎΠ²ΠΎΠ³ΠΎ статуса Π½Π° ΠΆΠΈΡ‚Π΅Π»Π΅ΠΉ ΠΈ ΠΏΡ€Π΅Π΄ΠΏΡ€ΠΈΠ½ΠΈΠΌΠ°Ρ‚Π΅Π»Π΅ΠΉ КиСва - [A sea of risks](https://www.kommersant.ru/doc/8814419) - ΠžΠ±Ρ‰ΠΈΠΉ контСкст ΠΏΠΎ рискам для бизнСса Π² условиях Π±ΠΎΠ΅Π²Ρ‹Ρ… дСйствий ## ❓ FAQ ### Q: What is Cabinet of Ministers Resolution No. 1541 and what is being changed in it? **A:** Resolution No. 1541 governs the mechanism for partial compensation of the cost of property and insurance premiums against military risks for businesses. The Ministry of Economy has prepared amendments that may expand the program's geography (including Kyiv) and review the rules for the fuel sector. As of September 16, 2026, the document is under government review. ### Q: Will Kyiv be included in the compensation program? **A:** According to sources, Kyiv is being considered as a high-risk territory, which could give the capital's businesses access to compensation. However, the final decision will be made only after the Cabinet of Ministers signs the resolution and the text is published on the Cabinet of Ministers' website. ### Q: Will the VAT be raised and why? **A:** The draft budget for 2027 includes a VAT increase to 21%. This measure is being considered as one of the sources of financing a special insurance fund to help businesses affected by attacks. For it to enter into force, a change in legislation will be required. ### Q: What are the potential losses of businesses from military actions? **A:** Economy Minister Alexander Kravchenko estimated the total losses of Ukrainian businesses from Russian strikes at approximately 10 billion dollars. It is precisely this scale of losses that justifies the need for systematic compensation and insurance mechanisms.