The first step to fairness: how to determine business losses from war. 10 key nuances

It was this document that started the procedure for determining the economic losses that business suffered during the war. The Cabinet has established responsible persons who would determine the damage caused and instructed the Ministry of Economy and the State Property Fund, in agreement with the Ministry of Reintegration, to develop a methodology for its definition. Recently, the Ministry of Economy has published a project for discussion. Next, answer 10 key questions on the document.

What is the required methodology, it involves the mechanisms of assessment (ie determining the size) of damage and losses caused to enterprises, institutions and organizations, other economic entities, regardless of ownership, precisely due to the armed aggression of the Russian Federation against Ukraine.

The technique can determine: - real losses caused by the loss, destruction or damage of property; - lost benefit due to the impossibility or obstacle to economic activity; - expenses necessary for the restoration of property and property rights that have been devastated due to armed aggression.

What real losses of business are evaluated the methodology determines the peculiarities of assessment of real losses on: real estate, movable property (machinery and equipment), vehicles, inventory and biological assets (for example, animals in farms), single property complexes of enterprises, institutions and institutions and institutions organizations of all forms of ownership, cultural values.

What is lost in the context of the method of profit - the amount of profit that the owner (user or balancing holder) of damaged or destroyed property could receive, provided that the property was not damaged or destroyed. The Government proposes to estimate the amount of money that has been intended for business for profit.

What kind of property can this be? For example, agricultural and forestry real estate, investment real estate, real estate with commercial potential, single property complexes of enterprises, institutions and organizations, corporate shares, tangible and intangible objects, the cost of which is determined by the cost of a single property complex created on their basis (OB 'ECTS associated with business).

Important: The lost benefit is not determined for enterprises that are created on the basis of uniform property complexes and showed unprofitable activities in 2020 and 2021.

What recovery costs are estimated by the method can be determined by the amount of costs required to restore the following property: - real estate; - vehicles, inventory and current biological assets; - assets of enterprises (institutions, organizations) as a single property complex, movable property (machines and equipment) and long -term biological assets (for example, gardens and other perennial plantations, as well as livestock livestock).

Those who evaluate the losses according to the methodology, to evaluate the losses caused by Russia's war against Ukraine will be: - experts in assessment (will carry out an independent assessment of losses); - forensic experts (conducting forensic examination (expert research)). What is the currency of the US dollar is a conditional currency to determine the amount of losses.

The result of the estimation in the equivalent of the conditional currency is transferred in UAH at the National Bank's official rate at the date of valuation. At what date they will evaluate the estimation of losses or missing benefits will be carried out on a specific date of valuation. It can be any date from February 24, 2022. Determination of losses (or missing benefits) at the date preceding 24. 02.

2022 is carried out according to the usual rules, which are referred to on independent assessment and forensic expertise by Ukrainian legislation and standards.

What documents are needed to determine the losses in the indicative list of documents used in the determination of losses, included: - legal documents for the object of valuation (contracts of sale, gift, certificates of ownership, extracts from the State Register of Real rights, economic contracts , reports on the results of object survey); - documents on the technical condition of the assessment object (passports, examinations, acts of commissioning); -documents confirming the costs of restoring the object damaged by armed aggression (prose-estimated documentation, relevant invoices, fiscal checks and other documents confirming the cost of restoring damaged objects).

What documents confirm that the losses have been caused by Russia according to the methodology, to the indicative list of documents confirming that the loss, destruction or destruction of property occurred as a result of armed aggression, in particular, includes: - an act on a fire drawn up by the SES bodies; - Act for the execution of works on cleaning the terrain from explosive substances (demining) performed by the SES bodies; - excerpt from the Unified Register of Pre -trial Investigations, which will confirm the violation of criminal proceedings upon damage or destruction of property; - documents for fixing damage to or destruction, losses made by the relevant commissions of the authorized bodies; .

. . Whether this technique will be compulsory and in which cases the technique enshrines that its provisions are mandatory and have an advantage over the provisions of other normative acts, methods and recommendations that regulate the issue of determining losses of enterprises, institutions and organizations.

The assessment of damage and loss by methodology is carried out for the following purposes of determination of losses: - within criminal proceedings under the laws of Ukraine; - to submit applications for compensation; - for filing claims, in particular collective, victims of international courts, as well as the claim of Ukraine as a state to international courts; - other goals defined by law. The projected method of methodology is not final.