Can Businesses Claim Compensation for Utility Services for Internally Displaced Persons: Legal Analysis and Conditions for Support
Since the outbreak of large-scale military invasion by Russia into Ukraine, millions of Ukrainian citizens have been forced to leave their homes due to danger and destruction caused by enemy actions. Many of them found shelter in temporary accommodations, receiving humanitarian aid and support from the government and various organizations. One crucial aspect of this aid is the provision of financial compensation for utility services to those who host internally displaced persons (IDPs) in their premises, especially businesses leasing properties for such purposes. The Pension Fund of Ukraine (PFU) recently addressed the issue of whether enterprises renting housing and accommodating IDPs free of charge can qualify for this compensation. According to PFU representatives, the Cabinet of Ministers Resolution No. 616 provides a legal framework for reimbursing utility costs in cases where housing is provided free of charge for IDPs living there permanently. However, specific conditions apply: IDPs must reside in the accommodation rent-free and on a permanent basis. Additionally, the rental fee under the resolution is not reimbursed; support is only for expenses related to utilities such as water, heating, and electricity, within social norm standards. These standards are established by the Ukrainian government’s resolution of August 6, 2014, No. 409, which sets a social norm of 13.65 square meters per person for housing. Therefore, enterprises and private individuals providing free shelter for IDPs under these conditions are eligible for state-supported compensation, easing their financial burden while contributing to humanitarian efforts. This mechanism plays a vital role in stabilizing housing conditions for displaced citizens and supporting businesses involved in providing necessary accommodations. It is also important to note that internally displaced persons can receive housing subsidies based on their actual place of residence, adding an additional layer of social support.