Ukraine's new compensation mechanism covers up to 80% of uninsured war damages for shipowners and operators in affected waters.
Ukraine has established a state compensation mechanism for war damages affecting shipowners, operators, and charterers. According to a statement from the relevant ministry dated October 16, it will be possible to compensate up to 80% of the damages that are not covered by insurance companies.
The mechanism targets damages incurred in Ukrainian territorial waters, the Temporary Maritime Route, and the waters of open Ukrainian ports. Loss or damage to sea and inland water vessels, emergency salvage costs, loss or deterioration of cargo, and crew damages are among the covered categories. Applications must be submitted within 180 calendar days from the date of the incident.
According to a review by Ukrainian UNN dated October 23, the program includes specific conditions for Ukrainian and foreign-flagged vessels carrying non-military cargo to or from Ukrainian ports. There must be a valid insurance or P&I policy at the time of the incident; the relevant war risk must not be covered by insurance.
The 80% is not an automatic payment rate but rather a ceiling. UNN notes that payments for 2026 damages are contingent upon the allocation of necessary funds in the 2027 budget. The submission of an application does not mean that the payment is finalized or will occur immediately.
Source: SeaNews Türkiye
