Cabinet resolution #1145 of November 3, 2023 

Decision-maker: the Cabinet of Ministers of Ukraine 

Status: in effect since November 3, 2023 

Who is affected: persons whose property was destroyed or damaged due to the Russian aggression and the Ministry for Communities, Territories, and Infrastructure Development 

Summary: 

the Fund for Liquidating the Consequences of the Armed Aggression will transfer to the Ministry for Communities, Territories, and Infrastructure Development: 

  • 2.5 bln UAH for the new budget program providing compensation for destroyed real estate 
  • 1.5 bln UAH for providing compensation for housing damaged by Russian aggression under the eVidnovlennia (e-Recovery) program. 

What is right:  

  • the state started paying compensation for the destroyed housing to people who suffered from Russian armed aggression 
  • people continue to receive compensation for the destroyed housing under the e-Recovery program 

What is wrong: 

  • since there is no unified reconstruction plan, funds from the Fund are allocated ad hoc. As a result, they will be used with questionable efficiency and there are risks of power abuse. Because of the restrictions imposed under martial law, including the closure of state registers and restrictions on freedom of speech, media and NGOs cannot effectively control the use of public money by the Fund 
  • initially, the money from the Fund for liquidating consequences of the armed aggression was to be spent on the restoration of critical infrastructure, hospitals, and schools. It is only because the resources of the state are limited, this money will be spent on compensations to restore housing 

Alternative solution: to develop a unified strategy for the reconstruction of Ukraine and plan the work of the Fund accordingly. Reconstruction should be timely, efficient, just, and data-driven. Our position on the issue is outlined here. 

Background information: on March 17, 2023, the President signed a law on compensation for damaged and destroyed housing. We described the shortcomings of this law here. On May 10, the procedure for providing compensation for damaged housing under the e-Recovery program started. 

Additional information: 

Position of the Centre of United Actions on the post-war reconstruction of Ukraine 

Post-war reconstruction of communities and compensations: how it will work and why local authorities will remain silent 

Do not reconstruct blindly: what should the post-war reconstruction of Ukraine be like and what are authorities doing wrong? 

Why does the Government need deputies for reconstruction? Ok, So What? podcast, episode 114