Compensation for real estate damaged or destroyed as a result of the Russian aggression

10 February 2023
Compensation for real estate damaged or destroyed as a result of the Russian aggression
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Compensation for real estate damaged or destroyed as a result of the Russian aggression

Draft bill #7198 of March 24, 2022

Cosponsors: a group of 42 MPs

Status: second reading

Who is affected: housing cooperatives and Ukrainian citizens who own real estate damaged or destroyed as a result of the Russian aggression.

Summary of the draft bill:

  • the bill introduces a mechanism of compensation for real estate damaged or destroyed as a result of the hostilities, terrorist acts, or diversions committed by the Russian Federation in the course of its war against Ukraine
  • the Registry of Damaged and Destroyed Property will be launched. It will store information about such property, compensations, and restoration funding
  • the following compensation types will be introduced:
  • funding for reconstruction
  • financial compensation
  • funding to buy a new accommodation
  • advisory commissions on the issues of compensation will be created under executive bodies of city, village, and settlement councils and civil-military administrations. These commissions will provide consultations about compensation and are supposed within 30 days to make decisions on whether compensation for the destroyed or damaged property should be provided.

What is right:

  • the bill defines the procedure of how an affected party can apply for compensation for damaged or destroyed real estate. It will help to improve living conditions for persons who suffered from the Russian armed aggression.

What is wrong:

  • the draft bill provisions compensation only for property destroyed after February 24, 2022, although Russia is waging war against Ukraine since 2014
  • only private individuals and housing cooperatives are eligible for compensation. At the same time, legal entities that own real estate damaged or destroyed as a result of the Russian aggression cannot apply for compensation
  • commissions on the issues of compensation are advisory bodies and thus cannot have powers to make decisions about compensation. Any decisions about compensation have to be made by government bodies or local governments
  • it is unrealistic to expect that these commissions will be able to consider applications within 30 days because there is too much damaged and destroyed property and the hostilities still continue.

Alternative solution:

  • any decisions about compensation have to be made by government bodies or local governments.