Compensation for destroyed and damaged housing: President signed the adopted draft law 7198

Draft Law #7198 creates a compensation mechanism for Ukrainians whose real estate was damaged or destroyed as a result of the Russian Federation’s military aggression against Ukraine. It will allow those who are currently homeless to receive assistance at the expense of the state budget of Ukraine. BRDO team participated in the development of the document.

It is important to note that this draft law is an intermediate link between providing the affected Ukrainians with housing and full compensation, which the Russian Federation must pay for all the damage caused to Ukraine and its citizens. After all, currently the Russian Federation does not pay reparations to Ukraine, and the budget of Ukraine cannot cover all the needs for the restoration of damaged or destroyed property. Those Ukrainians who decide to wait and not take advantage of the compensation that will be introduced by draft law #7198 will be able to receive funds after Ukraine’s victory from the reparations that will be paid by the Russian Federation.

Who will be able to receive compensation for destroyed and damaged housing?

  • owners of apartments, other residential premises, private, cottage, and country houses;
  • customers of construction of private, cottage, and country houses (individuals);
  • individuals who invested or financed the construction;
  • members of housing cooperatives who bought housing, but did not register the ownership right to it;
  • heirs of the above persons.

The draft law is aimed at creating a legal basis for citizens to receive compensation for some types of real estate as quickly as possible, without waiting for the decisions of international courts regarding reparations from the Russian Federation, since such processes can drag on for years. At the same time, further distribution of compensation to other categories of persons or other types of immovable property is not excluded in case of financial possibility. Receiving compensation in accordance with the adopted law is a right, not a duty of a citizen.

It is important in the draft law that the funds allocated for compensation for damaged or destroyed housing will work for the economy of Ukraine. This will be possible due to the fact that Ukrainians who have lost and need housing will be able to use the certificate to obtain housing on the secondary market or to finance the construction of a new housing or separate building materials, or services by analogy with eSupport.

Currently, the Government is developing a special methodology, according to which the amount of compensation for destroyed housing will be calculated, as well as an algorithm for compensation for persons whose housing was damaged.

Read more about how you can get compensation for destroyed or damaged housing and what needs to be taken into account during the implementation of draft law 7198 in our previous news.