On March 19, the Kyiv School of Economics hosted a discussion titled “Damages and Losses of Ukrainian Businesses: Register of Damage Caused by the Russian Federation’s Aggression Against Ukraine — Submission of Claims for Business Losses,” organized jointly by KSE and the Register of Damage for Ukraine (RD4U).

Since the very first days of the full-scale invasion, the KSE Institute has regularly assessed damages, losses, and reconstruction needs, working closely with the Ukrainian government, business community, and international organizations.

Opening the event, Nataliia Shapoval, Head of the KSE Institute, emphasized the importance of assessing losses and damages for further compensation:

“Today, it’s crucial to carefully and truthfully document these losses. These records will help demonstrate to the world exactly what Ukraine has lost due to Russia’s aggression. For businesses, it represents an opportunity for fair compensation, and for our country — a chance to rebuild what has been destroyed,” noted Nataliia Shapoval.

Dr. Chiara Giorgetti, Vice-Chair of the Board of the Register of Damage for Ukraine (RD4U), presented the principles behind the Register’s work. RD4U was established in May 2023 under the auspices of the Council of Europe in response to a resolution by the UN General Assembly recognizing Russia’s responsibility for damages caused to Ukraine.

“The Register of Damage for Ukraine is the first step in an international compensation mechanism aimed at ensuring reparations for harm caused by Russia’s full-scale invasion. Its purpose is to collect claims and information regarding all damage and losses caused by Russian aggression. The collected information will serve as the foundation for assessment by a future compensation commission and subsequent decisions on reparations. Therefore, it’s crucial to provide comprehensive details regarding damages, repair costs, or lost profits. All claims by legal entities must be submitted exclusively through Ukraine’s Diia web portal. The submitted information is confidential and stored according to strict security standards,” explained Chiara Giorgetti.

Dr. Veijo Heiskanen, Member of the RD4U Board, highlighted the importance of timely documentation of business losses, particularly when substantial sums are involved.

“The key is to preserve comprehensive evidence and calculations of losses from the outset. This is especially important for significant claims, which may be individually examined through arbitration-style proceedings,” stressed Veijo Heiskanen.

Lucy Reed, Member of the RD4U Board, clarified the practice for submitting claims:

“We understand that different companies have varying degrees of losses and that, for large companies, this may involve thousands of damaged assets. Therefore, the technical capabilities for submitting claims will take this into account and will be designed to ensure that the submission process is as efficient and convenient as possible,” said Lucy Reed.

Special attention was also given during the event to the submission of claims regarding assets located in temporarily occupied territories and to the possibility of updating previously submitted claims, as there is currently no deadline for filing documents with the Register.

Vladyslava Grudova, CEO of KSE Institute, and Dmytro Goriunov, Head of the “Russia Will Pay” project, took part in the discussion, emphasizing practical aspects of business cooperation with the Register and the specifics of documenting losses under wartime conditions.

Participants also discussed the prospects of creating an international compensation fund. As emphasized by Veijo Heiskanen, the number of submitted claims directly influences international pressure regarding reparations:

“The greater the number of submitted claims, the stronger the international pressure on Russia, thus increasing the likelihood of effective compensation for damages.”

Alongside KSE Institute experts, representatives from major Ukrainian companies participated in the event, including Naftogaz of Ukraine, Ukrenergo, Ukrhydroenergo, DTEK Group, Ukrainian Railways (Ukrzaliznytsia), Ukrposhta, Interpipe, Antonov, Ukrainian Energy Machines, Epicenter, and Budhouse Group.

According to the latest estimates by the Kyiv School of Economics, as of November 2024, the direct damages to Ukrainian infrastructure caused by Russia’s invasion amounted to $170 billion.

Moreover, according to the updated Rapid Damage and Needs Assessment (RDNA4), jointly prepared and published by the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations with KSE’s participation, the total cost required for the reconstruction and recovery of Ukraine is estimated at $524 billion over the next decade.