The Export Credit Agency of Ukraine is starting to accept applications for investment insurance against military and political risks, as provided for by the Law of Ukraine 3497-IX ‘On Amendments to the Law of Ukraine “On Financial Mechanisms for Stimulating Export Activity” regarding the insurance of investments in Ukraine against military risks’, which came into force on 1 January 2024. This was reported by the press service of the Ministry of Economy of Ukraine.
‘The launch of military and political risk insurance is an extremely important event for the market and no less important for the Made in Ukraine policy. A well-developed war risk insurance infrastructure can be an additional incentive for investors to enter the Ukrainian market and develop their export-oriented plants and factories here,’ said First Vice Prime Minister of Ukraine and Minister of Economy Yuliya Svyrydenko in a column for Forbes.
She noted that previously, war risk insurance was available only from international organisations - MIGA insured foreign companies willing to invest in Ukraine, the US DFC and the Polish KUKE agency provided guarantees to foreign and Ukrainian companies.
‘And now ECA joins the organisations ready to insure investments in Ukraine and in Ukraine. As a result, Ukrainian companies will receive additional guarantees of financial security, and the economy will increase business activity. Insurance will help to create the facilities and infrastructure necessary for the development of the processing industry and export of goods made in Ukraine,’ said Yuliya Svyrydenko.
The Export Credit Agency will offer two insurance products: direct investment insurance for investors and investment loan insurance for banks.
The war risks that the ECA can insure against include
- military conflict, including war or armed conflict, armed aggression, hostilities, mass riots
- violent change or overthrow of the constitutional order or seizure of state power;
- Terrorist acts and/or sabotage, including those caused by military conflicts, war, armed conflicts, hostilities, mass disorders or violent change or overthrow of the constitutional order, seizure of state power;
- occupation, annexation.