The first step is to provide proof of ownership of the relevant property. The next step is fixation of the fact of destruction or damage of property and communication of the causal link between the military actions and destruction or damage of property.
For over eight months now, the Russian federation shelling peaceful cities of Ukraine, which endangers the life and health of people, collapse of buildings and structures. For the owners of business such uncontrolled circumstances of emergency nature are also reflected in the complete destruction of their business or loss of part of goods, equipment or purely economic losses due to non-compliance of contractual terms and conditions by counterparties. In connection with this, today in Ukraine a new legal basis for fixation and proving of charged damages is being formed.
The losses incurred by enterprises and businesses can be expressed as follows:
- in direct material losses due to loss or damage of the company's property as a result of military operations;
- failure to fulfil the terms and conditions of business contracts;
- of expenses as a result of lost profits.
How business owners can receive compensation for losses incurred as a result of the war
Confirmation of the right of ownership of property
First of all, it is necessary to provide documents confirming the ownership rights to the respective property (documents of title to real estate objects, motor vehicles and other special equipment, documents confirming the acquisition of other property).
Fixation of ruin or damage to property
The next step is fixation of the fact of destruction or damage to property and presentation of the causal link between the military actions and destruction or damage to property. It is necessary to file an appropriate criminal complaint with the police for criminal proceedings. If an accident or a fire occurred at the enterprise as a result of tampering, it is necessary to draw up an appropriate act with the involvement of employees of the Department of Taxes and Levies.
Additional evidence of the cause-and-effect link can be photo or video materials, as well as written explanations in the form of supplementary notes from the employees of the company, if possible.
Estimation of target costs
The Ukrainian legal system is still only forming a complex and all-encompassing mechanism of compensation for the losses incurred as a result of military aggression of the Russian Federation.
The Verkhovna Rada of Ukraine has registered several acts that regulate the issues of assessment of assigned damages.
Zokrema, sama Decree of the Cabinet of Ministers of Ukraine dated 20.03.22 р. No. 326 The Procedure for Determination of Damage and Losses caused to Ukraine as a result of the Russian Federation's military aggression was established, which includes the procedure for determining the amount of losses and liquidation of losses caused by military actions.
Also, the Ministry of Economy and the State Revenue Fund are discussing the methodology for assessing the assigned school. This document regulates the determination of the amount of real losses, the determination of lost profits, the determination of costs necessary to restore the property and property rights of legal entities that suffered as a result of military operations.
According to the given methodology, the interested parties will conclude agreements with the subjects of the evaluation activity. The results of the evaluation will be followed by a report, in which the amount of losses will be determined. The report will be valid until the moment of recovery. The methods of evaluation are as follows: market value, replacement value, cost of construction, gross development value. The methodology defines the method of valuation or the use of a combination of methods.
The lost profit is planned to be calculated only in connection with damage to or destruction of property, it will not be calculated if the company demonstrated strong financial results in 2020 and 2021.
Identification of a person guilty of payment of damages and their recovery
Since the Russian Federation is the subject of unlawful actions, we should talk about filing a claim and recovery of damages in court. In Case No. 308/9708/19 of the Supreme Court of Ukraine, the Casualty Civil Court of the Supreme Court of Ukraine issued a statement regarding the judicial immunity of the Russian Federation in the case of compensation for damages caused by the aggressor state.
If a Ukrainian court considers a case where the respondent is the Russian Federation, the court has the right to ignore the immunity of this country and to consider cases on compensation for the damage caused to a person as a result of the military aggression of the Russian Federation.
It is a pity that we can talk about further repayment of damages in accordance with the court judgement only after Ukraine's victory. Our country is actively negotiating on the direction of reparation mechanisms: who will have the right to take these decisions, and how much money will be used to enforce these decisions.
Anastasia Semenyuk,
the head of the Regional Centre for the provision of free-of-charge services
Secondary legal aid in Vinnitsa oblast
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