Draft bill #11147 of April 3, 2024 

Cosponsors: a group of 6 MPs from the Servant of the People faction with Volodymyr Kreidenko as the first signatory 

Status: sent for review to the Committee of the Verkhovna Rada of Ukraine on Economic Development 

Who is affected: citizens of Ukraine whose cars were destroyed or damaged due to the Russian aggression 

Summary: 

  • compensation for damaged and destroyed cars will be introduced for individuals, legal entities, and their heirs and legal successors 
  • the executive body of a local government body will be required to create a commission that will consider the issues of granting or denying compensation 
  • the commission will accept applications for compensation for damaged and destroyed cars if the property is damaged or destroyed in the territory where the commission operates. The application will have to contain information specified in the procedure approved by the Cabinet. It will have to be accompanied by a copy of the document confirming the ownership of the damaged or destroyed car (required), as well as photos and videos of the car before and after damage (if available). Documents can be submitted either online via the DIIA portal or at an administrative services center, a social security body, or a notary 
  • to apply for compensation, the owner of the damaged or destroyed vehicle will have to submit the required documents during martial law or within three years after its termination 
  • the commission will review the submitted application and documents and verify their completeness and authenticity. If necessary, it will request the original documents, conduct an additional check, and issue a decision to grant or deny compensation within 30 days 
  • if some required documents are missing or the recipient of compensation (or their heir) is suspected of committing a crime against the state, the commission will suspend the consideration of the application 
  • compensation will be paid to the current account opened in the name of the recipient. The amount of compensation will be determined individually for each applicant and each car, based on national standards, methodologies, and current legal acts determining the value of a vehicle 
  • the recipient of compensation for the destroyed car will no longer have the ownership of the destroyed car 
  • it will be possible to appeal against the commission’s decision by submitting the respective appeal to the local government body that established it 
  • priority right to compensation for one vehicle will be granted to: 
  • combat veterans and persons with disabilities caused by war 
  • people mobilized during martial law who were not granted the combat veteran status 
  • large families 
  • persons with disabilities of groups I and II 
  • the bill provisions that the funding sources for compensation for damaged and destroyed cars will be: 
  • the Destroyed Property and Infrastructure Restoration Fund 
  • international technical and/or free or loaned financial assistance 
  • reparations and other recoveries from the Russian Federation 
  • other sources not prohibited by the laws of Ukraine 
  • local self-government bodies will be allowed to launch local programs and create funds to provide compensation for damaged and destroyed motor vehicles. 

What is right: the draft bill addresses the issue of compensation for vehicles damaged or destroyed due to the armed aggression by the Russian Federation against Ukraine 

What is wrong: currently, the state spends its limited financial resources on the most pressing needs, such as supporting the Armed Forces of Ukraine, rebuilding critical infrastructure, and humanitarian issues (provision of housing and support for internally displaced persons). Compensation payments for damaged and destroyed cars are important, but not the most pressing need 

Alternative solution: the state can introduce preferential loans for purchasing new cars, damaged vehicle repair programs, or a disposal program for the owners of cars damaged or destroyed due to the aggression by the Russian Federation 

How to help the legislator: proposals concerning the draft bill can be sent to the Committee of the Verkhovna Rada of Ukraine on Economic Development 

Background information: on May 30, the Cabinet of Ministers approved a resolution defining the compensation procedure for destroyed real estate. This procedure defines the processes of submitting and reviewing applications, calculating the amount of compensation, and funding allocation for the construction of cottage-type, garden, or summer houses, etc. 

Aditional information: article by Oksana Zabolotna: Do not reconstruct blindly: what should the post-war reconstruction of Ukraine be like and what are authorities doing wrong?