Register of Damage for Ukraine Expands Claims for Businesses and the State of Ukraine: Loss of Control of Property and Damage to Immovable Property

Register of Damage for Ukraine Expands Claims for Businesses and the State of Ukraine: Loss of Control of Property and Damage to Immovable Property

Register of Damage for Ukraine Expands Claims for Businesses and the State of Ukraine: Loss of Control of Property and Damage to Immovable Property

In August 2026, the Register of Damage for Ukraine (the “RD4U”) opened seven further categories of property-related claims which legal entities and the State of Ukraine may submit in respect of damage caused by russia’s armed aggression against Ukraine.

The new categories close two significant gaps. They allow businesses to claim in respect of property which has not been physically damaged but over which control has been lost in the temporarily occupied territories, and they extend claims for damaged or destroyed immovable property to residential and other non-commercial property.

Loss of Control of Property in the Temporarily Occupied Territories (C3.2)

On 27 August 2026, the RD4U opened the submission of claims by legal entities under category C3.2 “Loss of control of property in the temporarily occupied territories”. The new category addresses an important gap for businesses whose assets have not been physically damaged but are no longer under their control.

A claim in this category may be submitted where:

  • • the legal entity owns property located in Ukraine within its internationally recognised borders, including its territorial waters; and

  • • control over that property was lost on or after 24 February 2022 as a consequence of the temporary occupation of the territory where the property is located.

Loss of control means the deprivation, in whole or in significant part, of the owner’s ability to use, enjoy or dispose of the property without reliance on russia, its government, its regional or local authorities, or any entity owned or controlled by them. For entities owned or controlled by the State or by regional or local authorities, “owner” extends to the holder of the right of economic management, the right of operational management or a right of usufruct.

Where a claimant regains control of the property, it must update its claim to inform the Register.

Who May Submit a Claim?

As with the other categories applicable to legal entities, claims under category C3.2 may be submitted by legal entities regardless of their form of ownership and wherever incorporated (other than in russia), including State-owned and municipal companies.

What May Be Claimed?

Claims in this category may cover the value of the property over which control has been lost, loss of profit resulting from the loss of control of the property, and the total loss of business. Claims for loss of profit must be supported by evidence demonstrating the loss – commercial and financial reporting for the preceding years is the usual starting point – and must account for the costs that would have been incurred in generating that profit.

Damage to or Destruction of Immovable Property (B1.3–B1.5, C1.3–C1.5)

On 20 August 2026, the RD4U opened six further categories for claims by the State of Ukraine, including its regional and local authorities, and by legal entities in respect of damage to, or destruction of, immovable property:

  • • residential immovable property – residential premises (B1.3, C1.3);

  • • residential immovable property – common areas, such as stairwells, lifts and roofs (B1.4, C1.4);

  • • public buildings and facilities, such as administrative, cultural and sports facilities (B1.5);

  • • non-residential immovable property not connected with business activity (C1.5), which applies to buildings and premises used for public, charitable, humanitarian, religious or social purposes.

Who May Submit a Claim?

Claims in the B categories are reserved for the State of Ukraine, acting through its designated regional and local authorities; the Board determines whether a claim is recorded in a B or a C category according to the nature of the claimant. Claims under categories C1.3, C1.4 and C1.5 may be submitted by legal entities regardless of their form of ownership and wherever incorporated (other than in russia), including State-owned and municipal companies.

What May Be Claimed?

Claims under these categories cover compensation for the value of the destroyed property or the costs of its repair or restoration. 


Important

Commercial immovable property is not covered by category C1.5, which applies only to non-residential property the purpose of which is not to generate profit; damage to such property falls under category C3.1 Damage, destruction or loss of assets. The residential categories (B1.3, B1.4, C1.3 and C1.4) turn on the nature of the property rather than on its commercial use.

Background

The newly opened categories extend the framework established by the RD4U on 29 April 2026, when it began registering claims submitted by legal entities and the State of Ukraine in five categories: damage or destruction of critical and non-critical infrastructure (B1.1, B1.2, C1.1, C1.2) and damage, destruction or loss of assets (C3.1).

These developments form part of the broader, phased establishment of the RD4U as the first element of the international compensation mechanism. The mechanism is established under the auspices of the Council of Europe and was created by the Resolution of the Committee of Ministers of the Council of Europe of 12 May 2023 for the purpose of recording evidence and claims submitted by victims of russia’s internationally wrongful acts in or against Ukraine. The RD4U does not exercise any dispute-resolution functions; its mandate is limited to receiving, processing, categorising and recording claims and assessing their eligibility for further consideration by the future International Claims Commission for Ukraine.

The second component is the International Claims Commission for Ukraine, being established as an independent body within the Council of Europe, which will directly adjudicate claims submitted by legal entities and individuals. The Convention on the Establishment of the International Claims Commission for Ukraine was opened for signature at a diplomatic conference in The Hague on 16 December 2025. As at August 2026, the Convention had been signed by forty States and the European Union and ratified by seven States and the European Union. It enters into force three months after ratification by at least twenty-five signatories, provided that the combined contribution of such States to the 2025 budget of the RD4U amounts to no less than 50%.

The third component is the Compensation Fund, from which payments will be made pursuant to decisions of the International Claims Commission for Ukraine.


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