Government Approves Compensation Procedure for Military Incident Damages

On Saturday, June 27, during an away session in Latgale, the Cabinet of Ministers approved amendments prepared by the Ministry of Justice that establish a clear process for residents, businesses, and municipalities to receive compensation for direct damages resulting from military actions in peacetime.

The regulation stipulates that in the agricultural sector – for damage to crops, plantings, forests, animals, and farm machinery – affected parties must contact the Rural Support Service (LAD) within three working days, providing factual information about the losses. LAD must decide on the compensation amount within one month and submit a request to the Ministry of Agriculture within three working days after the decision. The ministry prepares the necessary documentation, and LAD disburses the payment.

For other property – real estate and movable property – individuals must apply to their local municipality within three working days with evidence of damages. The municipality has one month to decide on the support amount and then three working days to submit a request to the Ministry of Smart Administration and Regional Development.

Compensation rates depend on insurance status. If a person has peacetime military risk insurance, the state covers 90% of the losses (minus any insurance payout). If such insurance is unavailable on the market, individuals are also eligible for 90% compensation. Without insurance, the compensation is 75%.

The regulations were developed following incidents in May when several drones, believed to be related to the war in Ukraine, entered Latvian airspace; some fell and exploded, and over Estonia a NATO fighter jet shot down a drone.