The requirement to halt operations during air raid alerts—or to urgently construct private shelters—has created significant challenges for entrepreneurs. The government has announced its intention to review these regulations and extend the deadlines for businesses. Will extending these deadlines save businesses? What documentation is required to prove that shelters are ready? And how should employees be compensated during air raid alerts? RBC-Ukraine explores these questions.
Key points:
New timelines: Regional Military Administrations (RMAs) will collect data on compliance with these requirements until March 4; the government will then determine the next steps based on these findings.
The business perspective: Business associations are urging the state to provide compensation and ensure the availability of shelters within local communities, rather than shifting its own responsibilities onto entrepreneurs.
Challenges for the service sector: The beauty industry warns of potential closures due to the specific nature of their services, while restaurants and hotels lack clear guidelines on how to handle guests who refuse to move to a shelter.
The December 4 deadline: Legally, the original deadline remains in effect; therefore, to secure an extension, companies must provide documentation proving that work has actually begun.
What the government’s draft proposal changes
In early September, the Cabinet of Ministers adopted a resolution (No. 1092) updating the rules for business operations during air raid alerts, specifically regarding the “yellow” danger level. Under these regulations, businesses may continue operations only if they have protective structures—either temporary or permanent shelters—available for both staff and visitors. To meet the new requirements, officials granted businesses a transition period ending on December 4. However, representatives of the business community stated that it would be impossible to comply with the regulations within this timeframe. This is particularly true for small businesses, which lack the financial or technical capacity to set up their own shelters. Consequently, last week the government acknowledged the need to revise the rules to prevent the suspension of economic activity. Prime Minister Serhiy Koretskyi announced a postponement of the requirements and an update to the approaches outlined in the resolution.
Shelter or Shutdown: What Businesses Think of the Cabinet’s Security Proposals—and What’s Wrong with Them
Under the proposed amendments, regional military administrations will collect data on local compliance with security requirements until March 4, 2027. Only then will the government make further decisions. The Union of Ukrainian Entrepreneurs (SUP) noted that the government’s draft proposal extends the transition period until April 4, 2027, for enterprises that have documented the commencement of shelter setup. For those currently engaged in the construction or reconstruction of protective structures, the preparation period has been extended until June 4.
In addition to extending deadlines, the draft regulation introduces differentiated requirements for businesses. The criteria for shelters or safe spaces will depend on the number of employees and visitors present at the facility at any given time. Entrepreneurs will also be permitted to use mobile protective structures or shelters located in adjacent buildings, provided they have sufficient capacity. However, the establishment must inform people about the location of such a shelter.
Do extended deadlines save businesses?
The proposed amendments to the resolution grant businesses additional time and incorporate many of their suggestions; however, they still fail to alleviate the financial burden. The rush by companies to comply with the original requirements of the resolution triggered a sharp spike in demand for protective structures, driving up prices. According to the Union of Ukrainian Entrepreneurs (SUP), some companies have faced long waiting lists for the manufacturing and installation of shelters, complex approval procedures, and limited availability of such structures. Furthermore, the cost of certain mobile shelters has surged from 600,000–800,000 hryvnias to 1.2–1.4 million hryvnias.
Shelter or closure: what businesses think of the Cabinet’s safety proposals—and what’s wrong with them
While the Union welcomes the Ministry of Economy’s willingness to consider the business community’s position, several issues remain unaddressed in the draft. These include the reimbursement of expenses, tax incentives, the simplification of installing mobile shelters on leased premises, and the differentiation of requirements for specific categories of enterprises. The situation is most difficult in frontline communities, which operate under constant shelling, explains Hanna Strykun, head of the “National Platform for Small and Medium-Sized Businesses” (NGO), in a comment to RBC-Ukraine. If small businesses in these areas are forced to repeatedly pause or completely cease operations due to a lack of shelters, it will lead to job losses and a decline in local budget revenues.
“If a community lacks an accessible shelter, if the owner of a rented property is technically unable to set one up, and if the nearest protective structures are unavailable to visitors, then even an additional three months will change nothing,” notes Hanna Strykun.
According to the head of the National Platform for Small and Medium-Sized Businesses, the state should not shift its own responsibilities onto entrepreneurs; instead, it should establish a clear and realistic framework defining the obligations of each party. Consequently, it is the duty of the authorities to ensure the availability and proper condition of accessible shelters within communities.
…information regarding the address of the nearest shelter. Instead, it is up to the visitor to decide whether to enter the establishment during an air raid alert and whether to proceed to a shelter.
“We are convinced that businesses should not be required to provide something they are physically incapable of ensuring. Our principle is this: the state should create conditions for businesses to operate safely, rather than forcing them to choose between closing down or assuming the functions of the state,” emphasizes Hanna Strykun.
How various sectors are reacting to the new rules
The practical implementation of the new safety regulations has elicited mixed reactions across different business sectors. The resolution has been met with criticism in the beauty industry, where it is often impossible to halt operations once an air raid alert is sounded. Nataliia Honcharenko, founder of The Concepts Beauty & Medical Business School, noted in a comment to RBC-Ukraine that complying with these requirements is unrealistic for the sector. Since most procedures cannot be interrupted, they would have to be removed from the service menu—a move that could lead to the closure of tens of thousands of beauty businesses. Meanwhile, in the restaurant industry, the primary concerns remain technical ambiguity and legal liability regarding visitors. Restaurant market expert Olha Nasonova pointed out to RBC-Ukraine that, in the absence of official state criteria, establishments are forced to determine safe areas on their own.
Furthermore, she noted that establishments are currently developing additional notification systems to alert guests about the status of air raid alerts. At the same time, the question of liability regarding visitors who refuse to leave the premises during an air raid alert remains open. To protect themselves against potential claims, some suggest recording such refusals on video or having guests sign brief agreements.
The hotel industry faces similar challenges due to the large number of guests. Artur Lupashko, founder and CEO of Ribas Hotels Group, noted that while the chain welcomes the government’s intention to differentiate shelter capacity requirements and allow the use of nearby shelters, there is a need for clear guidance from the state.
“Certain provisions require regulatory and methodological clarification. Specifically, this concerns the criteria for defining a ‘basic safe space,’ requirements for mobile shelters, the methodology for calculating capacity, and the procedure for verifying access to shelters located outside the hotel,” Lupashko points out.
According to him, hotels within the chain are already designating spaces within their buildings for guests and staff to use during an air raid alert. However, they cannot yet definitively classify these areas as “safe,” as the state has not yet established clear criteria. Lupashko also notes that the situation where a guest refuses to move to a shelter requires specific regulation. In his view, it is essential to define the limits of staff authority, striking a balance between safety protocols and constitutional human rights. Other major market players are also currently adapting to the existing requirements. As Roman Romanchuk, CEO of the Multiplex cinema chain, told RBC-Ukraine, 12 cinemas are currently equipped with shelters or safe spaces, while the rest are in the process of preparing to meet the new requirements.
“In cinemas where the necessary conditions are not yet in place, screenings will not be held during a ‘yellow’ air raid alert level. We strictly adhere to current regulatory requirements, and the safety of our guests and team remains our priority,” the Multiplex CEO noted.
He added that the compensation policy for customers remains unchanged: if a screening is cancelled, guests are provided with promo codes for a future visit. If the screening cannot be resumed, viewers are compensated for the cancelled session. Meanwhile, McDonald’s maintains its existing internal policy: the chain’s locations cease operations during any level of air raid alert. “The safety of our employees and customers always remains the company’s priority. We follow established safety protocols, which currently remain unchanged,” the chain’s press service told RBC-Ukraine.
Legal nuances: how to document the commencement of work and how to handle payment during downtime.
Despite a proposed extension of the deadlines, as of early November, amendments to Resolution No. 1092 have not yet been officially adopted. Therefore, as Olga Zavyazun, a lawyer in the Business Support practice at Juscutum, explains in a comment to RBC-Ukraine, the original deadline—December 4, 2026—remains formally in effect for enterprises. At the same time, she adds, the government’s draft proposal provides for a deferral for enterprises that, by December 4, can provide documentation proving they have begun setting up a shelter or have secured access to a nearby shelter. The key factor is not merely the existence of a document, but the ability to demonstrate that the enterprise has moved beyond intentions to concrete actions aimed at complying with the resolution’s requirements.
There is currently no definitive list of required documents or a specific procedure for verifying them; therefore, a single payment or contract does not guarantee a deferral. According to Olga Zavyazun, acceptable evidence may include:
an inspection report and technical calculations;
a contract with a contractor or supplier, accompanied by a cost estimate;
payment records;
correspondence with the landlord or the entity responsible for the facility holder;
an internal order regarding the commencement of operations and the appointment of responsible personnel.
Furthermore, the resolution does not designate a specific authority to inspect businesses during air raid alerts, nor does it establish separate penalties. According to a legal expert, oversight will be conducted either through existing mechanisms or via new ones introduced by the authorities: military administrations will carry out monitoring, the State Emergency Service (SES) will address civil protection matters, and the State Labour Service will assess the safety of working conditions. Another crucial issue concerns employee remuneration during work stoppages. Zavyazun notes that if an employee continues to perform their duties from a shelter during an alert, this time is compensated as regular working hours. If work cannot be performed, the employer should formally declare a “downtime” (stoppage of operations).
Shelter or Closure: Business Perspectives on the Cabinet of Ministers’ Safety Proposals and Their Shortcomings
As a general rule, downtime is compensated at a rate of at least two-thirds of the base salary; however, in situations involving a threat to life, the employee is entitled to their average earnings. Therefore, Olga Zavyazun advises that the procedures for recording time and calculating payments during air raid alerts should be formalized in an internal company document, and employees should be duly informed of these policies.
Frequently Asked Questions (FAQ):
When are businesses required to halt operations during air raid alerts?
Formally, under Resolution No. 1092, effective December 4, enterprises may not continue operations unless they have access to a shelter—either on-site or nearby—or a designated safe space. How much does a mobile shelter cost, and why has a shortage emerged?
Due to a massive surge in demand and a limited number of manufacturers, the cost of individual modular shelters has risen from 600,000–800,000 to 1.2–1.4 million hryvnias, and a backlog has formed for their production.
What issues remain unaddressed by the amendments to the resolution?
Issues such as the reimbursement of business expenses, tax incentives, regulations for installing structures on leased land, and standards for specific categories of enterprises remain unresolved.
Why do the new requirements hit front-line zones the hardest?
Due to a lack of available shelters and frequent air raid alerts, small businesses in these areas may be forced to shut down completely—a scenario that threatens job losses and a decline in local budget revenues.
How can businesses legally formalize payment procedures for periods during air raid alerts?
Legal experts recommend establishing rules for tracking hours worked and determining compensation for downtime in an internal company policy, which should then be signed off on by the team.
