Ukraine is expanding a range of state-backed financial support measures to help businesses recover from damage caused by war, introducing additional war-risk insurance mechanisms, compensation programmes and preferential loans with interest rates as low as 0.1%, reported Ukraine Business News.

The Economy Ministry said businesses now have access to several war-risk insurance instruments, including commercial policies offered by domestic insurers as well as state programmes that compensate companies for losses and subsidise part of their insurance premiums.

Under the existing scheme, 63 companies have already applied for government subsidies to help cover insurance costs. Eligible businesses can receive compensation of up to UAH3mn ($67,000) for insurance premiums.

Companies operating in frontline regions may also qualify for compensation of up to UAH30mn (about $650,000) for property damaged or destroyed by Russian attacks, the ministry said.

From July 1, small and medium-sized enterprises will gain access to another recovery instrument through Ukraine's Affordable Loans 5-7-9% programme. The new loans are designed to finance the restoration of facilities damaged during the war and will carry an interest rate of just 0.1% during the first two years.

The maximum loan amount under the programme will be UAH150mn (around $3.4mn), providing businesses with access to long-term financing for reconstruction.

The ministry said the measures are intended to improve companies' access to capital despite the elevated risks created by the war and to encourage investment in rebuilding productive capacity.

Demand for recovery financing remains substantial. In the Kharkiv region alone, approximately 600 agricultural enterprises and more than 1,000 businesses from other sectors have suffered damage as a result of Russian military action.