Ukraine introduces a compensation system for commercial vessels harmed by Russian aggression, aiming to lessen the war's economic toll.
The Ukrainian government has approved a state compensation mechanism for shipowners, operators, and charterers of commercial vessels damaged due to Russian attacks. The new regulation aims to address the damages incurred by maritime and inland waterway transportation companies operating in the Black Sea as a result of the war.
Ukrainian Government's Decision on Compensation for Commercial Vessels
In order to mitigate the economic impacts of the ongoing war with Russia on commercial maritime transportation, Ukraine has decided to implement a new state compensation mechanism.
According to the circular numbered 833 dated November 2, 2026, issued by the İMEAK Chamber of Shipping, the procedure and principles of the compensation system for commercial vessels damaged as a result of the armed attacks and military activities of the Russian Federation were approved by the decision of the Ukrainian Cabinet of Ministers dated October 7, 2026, numbered 1248.
The decision, officially published on October 15, 2026, covers vessels used in maritime and inland waterway transportation.
Shipowners, Operators, and Charterers Eligible for Compensation
According to the regulation, the state compensation mechanism targets shipowners, operators, and charterers of vessels that have been damaged due to Russian attacks.
The decision is considered significant in terms of alleviating the economic consequences of the war risks faced by commercial vessels operating to Ukrainian ports.
The ports of Odesa, Chornomorsk, and Pivdennyi on Ukraine's Black Sea coast play a crucial role in delivering the country's grain, metal, and other export cargoes to global markets.
Announcement Made to Shipowners in Turkey
The General Directorate of International Service Trade of the Ministry of Trade of the Republic of Turkey conveyed the information received through the Odesa Commercial Attaché to the İMEAK Chamber of Shipping.
The Chamber of Shipping also announced the relevant regulation to its members with the circular dated November 2, 2026.
This development is also important for Turkish shipowners, ship operators, and charterers who organize voyages to Ukrainian ports.
However, the conditions under which Turkish companies can benefit from the compensation mechanism will depend on the detailed implementation provisions of the decision.
Compensation for Sinking, Severe Damage, and Cargo Losses
According to the regulation published by the Ukrainian government, the compensation scope includes the total loss of the vessel, severe damages that are not economically repairable, structural damages that cause the vessel to lose its seaworthiness, and salvage costs.
Additionally, cargo loss or damage, wreck removal, environmental pollution remediation, damages to third parties, and health damages to crew and passengers are also included in the regulation.
Payments of up to 80% of the Damage Amount May Be Made
One of the most important provisions of the decision is that compensation can be paid for up to 80% of the assessed damage amount for certain types of damage.
However, payments will be limited to the resources allocated in the budget. It is anticipated that the resources in the 2027 Ukrainian state budget will be used to cover damages incurred in 2026.
To benefit from the compensation, there must be a valid insurance contract or P&I policy in effect at the time of the incident, and the relevant war damage must not be covered by insurance.
180 Days Granted for Applications
According to the regulation, the rightful owners of the damaged vessels may apply to the relevant ministry of Ukraine within 180 calendar days from the date of the incident.
Applications will include insurance documents, damage assessment reports, and other documents proving the damage. Payments will be made in Ukrainian hryvnias to a bank account opened in Ukraine.
The mechanism covers not only Ukrainian-flagged vessels but also foreign-flagged vessels. However, certain individuals and companies connected to Russia and Belarus, as well as sanctioned parties, are excluded from the scope.
Source: SeaNews Türkiye
