Compensation for a Destroyed Warehouse: Damage Assessment Algorithm and Business Mistakes

Imagine the situation: a nighttime strike. Your logistics hub has turned into a pile of concrete and mangled metal. The owner’s first reaction is to save the surviving goods, clear the driveway, call their builders to “patch the holes,” and keep working.

Stop.

The moment you lift the first stone before the arrival of official authorities, you have single-handedly destroyed the evidence base. For an international court or the Register of Damage (RD4U), a “clean” site means no destruction occurred. Or that you cannot prove the causal link between the missile and the damage.

I am Denis Fedorkin, Managing Partner of the Law Business Association. In 17 years in the legal business, I have seen hundreds of entrepreneurs who know how to make money but do not know how to protect what they have earned. In 2026, the war moved this issue to the plane of survival.

Today we will analyze how damage assessment turns into real money (reparations), and why photos on an iPhone are not enough for The Hague.

Why you will receive 0 hryvnias if you touch the rubble

This is the most common mistake. Business logic is “recover faster.” Lawyer logic is “document the crime.” If you have removed traces of destruction, proving the extent of the damage becomes almost impossible.

“Civil-Law Relations” or a War Crime? The Qualification Trap

The first trap business falls into is trying to treat the event as ordinary force majeure. You call counterparties, explain the situation. But to get compensation, we do not need a reconciliation act, but criminal proceedings.

The state often tries to simplify its life. Investigators may qualify property damage under articles that do not provide for an international compensation mechanism.

Your task is to insist on Art. 438 of the CCU (Violation of laws and customs of war). Why is this critical? Because business compensation through international institutions is possible only if there is evidence of aggression by the RF.

If your documents feature “fire due to negligence” or vague wording about “unidentified persons,” no international arbitration will accept such a case.

Legal Hack from LBA: Do not rely solely on the investigator. They are overloaded with hundreds of cases. We at LBA initiate our own attorney investigation parallel to the official one, recording witnesses and collecting debris (yes, this is physical evidence!) before they disappear.

Action Algorithm: How to cement the evidence

Forget about chaotic calls. Here is a clear protocol (the “gold standard”) that we implement for clients:

1. Emergency services and “hot pursuit”

Calling the SES (State Emergency Service) and the police is mandatory. But there is a nuance. Demand that the SES not just “put out the fire,” but draw up an Act clearly stating the cause of ignition: “as a result of shelling/blast wave.” If they write “short circuit” — you have lost.

2. Video and photo documentation: Why a phone is not evidence

Judges in The Hague will not watch your Instagram stories. Documenting destruction requires strict adherence to rules:

• Location binding: The video must show permanent landmarks (neighboring buildings, road signs) allowing location identification.
• Metadata: The file must contain GPS coordinates, date, and creation time.
• Continuity: Filming is done in one take, from a general plan (entrance to the territory) to macro filming of damaged structures.

We use specialized software (like EyeWitness to Atrocities or equivalents) that hashes the video, making accusations of editing or deepfakes impossible.

3. Criminal proceedings

Within 24 hours, the information must be entered into the ERDR (Unified Register of Pre-trial Investigations). Get an extract. Demand recognition of your company as the injured party. It sounds banal, but without the status of a “victim,” you are nobody in the process.

4. Inventory and “Lost Profit”

This is where high-level skills begin. A destroyed warehouse is not just walls. It is goods, equipment, servers.

• Conduct a full inventory (with the participation of independent auditors, if possible).
• Collect primary documentation for the destroyed goods (invoices, consignment notes, storage agreements).

Often opponents (insurance companies or even state bodies) try to accuse businesses of inflating losses, categorizing this as deception or fraud. Saying, “the goods were written off before the explosion.” To avoid such manipulations, your warehouse reporting must be flawless.

Expertise and Resolution No. 326: Counting money correctly

CMU Resolution No. 326 approves the “Methodology for determining damage and volume of losses.” But the methodology itself is just a formula. Variables into this formula must be inserted by a certified expert.

Do not save money at this stage. A regular real estate appraiser will not work here. You need a forensic expert in construction and technical expertise.

What we calculate:

1. Real losses: The cost of restoring the building or building a new one.
2. Movable property: Goods, machinery, vehicles.
3. Lost Profit: The most complex element. This is the profit you did NOT receive due to business stoppage.

In LBA practice, we involve financial analysts to calculate lost profit. We model a “business as usual” scenario and compare it with the actual state. This allows claiming amounts that are many times higher than the cost of bricks.

International Register of Damage (RD4U) and Diia

As of 2026, RD4U (Register of Damage for Ukraine) is the only legitimate window for future reparations. Filing an application is possible through the Diia portal, but it is not just “click and forget.”

The application must be supported by the entire array of evidence we discussed above. Files must be verified. Any error in numbers or documents can lead to refusal in registering the application.

Also, beware of intermediaries promising to “speed up payments” for a percentage. This is classic cyber fraud and abuse of trust. The Registry works according to transparent procedures. Trust only official representatives and licensed lawyers.

More about the registry’s work can be found on the official resource of the International Register of Damage.

Why does business lose in court? (A skeptic’s view)

I often see entrepreneurs, trying to save money, turn civil-law relations with contractors and the state into hell. Here is a typical failure scenario:

1. The owner took a photo on a phone.
2. Quickly removed the debris to start work.
3. Ordered an “express valuation” from a familiar realtor.
4. Filed a lawsuit against the RF in a Ukrainian court (which is often futile in terms of real collection without going through the RD4U procedure).

Result: A court case won on paper, which is impossible to execute, and refusal in the Register of Damage due to lack of evidence (since the rubble is gone).

We at LBA take a different approach. We understand that our goal is not a court decision in a frame on the wall, but the receipt of funds in the account. Therefore, we work according to Legal Due Diligence standards at the documentation stage.

FAQ: Questions you are too shy to ask

1. Can I get compensation if the warehouse was leased?
Yes, but only for your property (goods, equipment) and lost profit. The owner receives compensation for the building. However, you have the right to demand reimbursement for the cost of inseparable improvements if this is stated in the lease agreement. Read more about tenant rights in the Civil Code of Ukraine.

2. Is it worth restoring the warehouse at my own expense before receiving payments?
You can, but ONLY after conducting a full construction-technical expertise and documenting the “before” state. If you start repairs before the expertise — you will “hide” the damages. Keep all certificates of completed works and payment receipts — they will become proof of the restoration costs.

3. How long to wait for money?
Let’s be realistic. This is a long game. The Register of Damage is forming a base, filling the compensation fund continues at the expense of frozen RF assets. But those who submitted perfectly prepared documents in 2026 will be first in line.

Conclusions: Your actions today

War is chaos. But the fight for compensation requires iron order. Do not turn damage assessment into a formality. Every piece of paper, every photo, every expertise is a brick in the foundation of your future reimbursement.

If your business has suffered, do not try to be a builder and a lawyer at the same time. Your task is to save business processes. Our task is to ensure the aggressor pays for every destroyed beam.

Law Business Association (LBA) has been protecting assets since 2004. We know how to turn ruins into a legally fixed debt.

Need a protection strategy? View our practices. Or check the status of your case through the judiciary: court.gov.ua.

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