Maria Girich, Researcher of the International Best Practices Analysis Department at the Gaidar Institute, believes that suggested measures aimed to support of entrepreneurs, victims due to unmanned aerial vehicles (UAVs) attacks, may reduce financial load on business, however, they will not intrinsically solve the issue of direct losses.
According to the expert, tax deferments, credit holidays, a moratorium on bankruptcy and restrictions on blocking accounts allow companies to maintain liquidity during difficult periods. However, the cost of destroyed or lost goods is not reimbursed to entrepreneurs likewise.
“The problem regarding such measures is that they are not a compensatory mechanism for sellers. This is only a temporary reprieve: money for the lost goods will still not be returned. Therefore, support in terms of rescheduling payments may not be enough for a business that has suffered direct damage,” explained Maria Girich.
As one of the options for additional support, the expert suggested considering the participation of the marketplaces. She thinks that the sites already have experience in compensating sellers for the cost of goods lost due to their fault. In addition, support could be provided by reducing or canceling part of the commissions for entrepreneurs who find themselves the damage zone.
“The platform really cannot compensate for all the losses. However, it seems possible to help sellers, for example, by canceling or reducing part of the commissions,” noted Maria Girich.
She also focused on foreign compensation mechanisms. In Israel, there is a special fund from which businesses are compensated for direct damage to inventory and equipment, as well as part of the indirect losses in the event of a significant drop in revenue. She believes, such a system makes it possible to support entrepreneurs after the occurrence of damage, and not just transfer their obligations.
“Israeli experience shows that in such situations a different damage compensation mechanism can work. This allows the entrepreneur to receive funds to restore the business rather than simply defer payments,” the expert concluded.