A missile destroyed your office, warehouse or equipment: what a business should do to keep its right to compensation

Russian shelling causes damage every day not only to residential buildings but also to Ukrainian business. A destroyed shop, a damaged office, a burnt-out warehouse, ruined equipment or vehicles can mean losses running into millions and a de facto shutdown of operations. After an attack, however, it is important not only to deal with its consequences but also to record the damage properly. The ability to obtain compensation or reimbursement in the future may depend on this.

Step 1. Record everything before repairs begin

Once the relevant services have given permission, and only if it is safe to be on site, you should record the consequences of the attack in as much detail as possible. Take photographs and video of the building, the premises, the equipment, the stock, the vehicles and any other damaged assets.

You should not immediately throw away fragments of equipment or begin major repairs while the condition of the property has not yet been properly recorded.

For buildings and structures, the Procedure approved by Cabinet of Ministers Resolution No. 473 applies. It provides a mechanism for recording damage caused by the armed aggression of the Russian Federation.

Step 2. Gather the documents for the property

A business needs to confirm that the damaged assets did in fact belong to it, or were on its balance sheet or in its use. You should therefore keep title documents for real estate, lease agreements, delivery notes and purchase contracts for equipment, inventory records, accounting documentation, technical passports and similar papers.

If some of the documents were destroyed together with the premises, you should start restoring them as soon as possible.

Step 3. Have the losses assessed professionally

Calculating the value of destroyed equipment on your own is not enough. The procedure for determining the harm and losses caused to Ukraine as a result of Russian aggression is established by Cabinet of Ministers Resolution No. 326.

A separate Methodology, approved by order of the Ministry of Economy and the State Property Fund No. 3904/1223, also applies. It covers enterprises and other business entities of all forms of ownership and allows an assessment not only of the actual losses from the loss, destruction or damage of property, but also of lost profits and recovery needs.

The assessment may be carried out by a valuation entity and, in the cases provided for by law, the amount of harm may be established through a forensic examination.

Step 4. Do not forget evidence of lost income

If the destruction of a production line leaves an enterprise unable to manufacture for several months, the losses may be far greater than the value of the equipment itself.

That is why you should keep financial statements, contracts with customers, data on previous production and sales volumes, cancelled orders and any other documents capable of confirming the economic consequences of the business being brought to a standstill.

The main rule after shelling is not to limit yourself to photographs of the damaged premises. The more complete the body of evidence covering the fact of the destruction itself, the ownership of the property and the scale of the losses, the stronger the legal position of the company will be.

If you still have questions, or your business has suffered as a result of shelling and you need assistance with recording and assessing losses or with other legal matters, please contact the lawyers of the Strategic Advocacy Bar Association.