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The state plans to compensate for property lost as a result of hostilities

21/ 07/ 2022
  Author: Kostiantyn Hyrov, Partner of Dynasty Law & Investment On the official website of the Verkhovna Rada, the draft law with registration No. 7237 dated 31.03.2022 was published, the development of which is due to the urgent need to create a reliable and strong mechanism for the protection of property rights and other property rights to property that were violated as a result of the armed aggression of the Russian Federation. According to the specified act, legal entities/individuals will be able to submit an application for initial (submitted during martial law and 3 years from the date of its cancellation) and full (submitted during martial law and 5 years from the date of its cancellation) compensation for lost or damaged property, online - through the Unified state web portal of electronic services Diya or in person - through TsNAP. Moreover, if a legal entity/individual received initial compensation, it does not lose the right to receive full compensation. Full compensation in such a case will be the difference between the value of the lost or damaged property and the amount of initial compensation paid. The initial compensation will provide for the protection of property rights, individual housing rights, the restoration of life activities or services provided by a legal entity, as well as the restoration of normal life in Ukraine, and full - the protection of the property rights of victims to ensure a fair and targeted distribution of reparations or other recoveries from the aggressor country. However, we draw your attention to the fact that the right to initial compensation will be ensured gradually and proportionally in accordance with the financial capabilities of Ukraine, and it will be fully guaranteed only in case of payment of reparations or other charges to the Russian Federation. In addition, a legal entity/individual may personally choose one of the forms of primary/full compensation - either monetary compensation or compensation in the form of additional support measures for victims of armed aggression. However, the draft law establishes five queues for receiving initial/full compensation to an injured person, which makes it somewhat difficult to quickly receive such compensation, especially for a legal entity/individual who is not included in the priority list.

Author: Kostiantyn Hyrov, Partner of Dynasty Law & Investment

On the official website of the Verkhovna Rada, the draft law with registration No. 7237 dated 31.03.2022 was published, the development of which is due to the urgent need to create a reliable and strong mechanism for the protection of property rights and other property rights to property that were violated as a result of the armed aggression of the Russian Federation.

According to the specified act, legal entities/individuals will be able to submit an application for initial (submitted during martial law and 3 years from the date of its cancellation) and full (submitted during martial law and 5 years from the date of its cancellation) compensation for lost or damaged property, online – through the Unified state web portal of electronic services Diya or in person – through TsNAP.

Moreover, if a legal entity/individual received initial compensation, it does not lose the right to receive full compensation. Full compensation in such a case will be the difference between the value of the lost or damaged property and the amount of initial compensation paid.

The initial compensation will provide for the protection of property rights, individual housing rights, the restoration of life activities or services provided by a legal entity, as well as the restoration of normal life in Ukraine, and full – the protection of the property rights of victims to ensure a fair and targeted distribution of reparations or other recoveries from the aggressor country.

However, we draw your attention to the fact that the right to initial compensation will be ensured gradually and proportionally in accordance with the financial capabilities of Ukraine, and it will be fully guaranteed only in case of payment of reparations or other charges to the Russian Federation.

In addition, a legal entity/individual may personally choose one of the forms of primary/full compensation – either monetary compensation or compensation in the form of additional support measures for victims of armed aggression.

However, the draft law establishes five queues for receiving initial/full compensation to an injured person, which makes it somewhat difficult to quickly receive such compensation, especially for a legal entity/individual who is not included in the priority list.

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