Ukraine has approved a mechanism of state guarantees to cover losses suffered by civilian vessels as a result of Russian shelling.
This was reported by Mykola Kalashnyk, the Minister for Recovery, Infrastructure and Transport.
He said that Russia’s constant attacks on Ukrainian ports and the civilian fleet are increasing risks for shipping, making insurance more difficult and driving up logistics costs. To ensure the stability of maritime transport and support exports, a special compensation mechanism has been developed.
Under the Cabinet of Ministers’ decision, the state will cover up to 80% of the assessed damage if these risks are not covered by the insurer. This concerns damage to or loss of vessels and cargo, as well as the costs of emergency rescue operations.
Kalashnyk explained that owners, operators and charterers of vessels sailing under both Ukrainian and foreign flags will be able to receive compensation. The decision aims to reduce financial risks for transport participants and guarantee uninterrupted supplies of Ukrainian products to global markets.