Ukraine is preparing to expand state support for large businesses through preferential lending and broader war-risk insurance, as companies face growing damage to commercial property, warehouses and other infrastructure from Russian attacks, reported Ukraine Business News.

A new preferential lending programme for large retail businesses is nearing completion and will provide revolving financing at an annual interest rate of 5%, primarily to fund purchases of goods and maintain working capital. The programme will have a total budget of UAH2bn ($46mn) and is expected to operate until the first quarter of 2027.

The government is also preparing to extend war-risk insurance coverage to Kyiv and the surrounding region, where Russian attacks have caused increasing losses to business assets.

Under the proposed changes, companies would be able to insure property located in high-risk areas, as well as assets being transported through such territories. Coverage would apply to both owned and leased property.

The range of eligible assets is also expected to be expanded to include fuel tanks and fuel, transport and storage vehicles, agricultural machinery and trucks weighing more than 7.5 tonnes.

Maximum compensation for a single company over the entire programme would reach UAH30mn ($690,000). The maximum annual compensation for insurance premiums would also increase to UAH5mn ($115,000), from UAH3mn.