The Executive Director of UkraineInvest participated in the round table “Establishing a political risk insurance mechanism for Ukraine ” organized in Kyiv by the USAID Financial Sector Reform Activity.
Christopher Abrams, Director of the Office of Economic Growth, USAID\Ukraine and Oleksandr Gryban, Deputy Minister of Economy of Ukraine had opened the discussion.
Robert Bond, Chief of Party, USAID Financial Sector Reform Activity presented the Concept of establishing a political risk insurance mechanism for Ukraine.
The following discussion focused on its various aspects, such as the notions of “war risks” and “political risks”, and the political risks to be covered by the scope of the insurance. The role of the Government of Ukraine in the new Political Risk Insurance Mechanism and in improving the investment climate and minimizing existing political risks was outlined in a series of speeches.
The Executive Director of UkraineInvest emphasized that foreign investors are showing a growing interest in Ukraine, so it is important to provide them with opportunities to insure against political and war risks in order to stimulate this trend.
Sergiy Tsivkach presented a survey on investors’ expectations from political and military risk insurance, conducted among investors supported by UkraineInvest.
According to the survey, 89% of companies said that the availability of the insurance mechanism would have influenced their positive decision to invest in Ukraine. Foreign companies already operating in Ukraine, including the largest investors, also expressed interest in such an instrument.
The majority of the companies surveyed would like to insure their assets in Ukraine against destruction as well as the risks associated with non-receipt of income. UkraineInvest’s survey also covered the duration of the insurance and the types of operations, as well as the desired costs.
Sergiy Tsivkach suggested splitting military and political risks into separate insurance programmes to make insurance costs more affordable for business. He also stressed the importance of legislative changes to expand the possibilities of risk insurance for Ukrainian and foreign investors, citing the example of Poland, where the possibility of risk insurance for all investors in Ukraine is being considered by the The Export Credit Insurance Corporation (KUKE).
Positions of international political risk insurers, the Government of Ukraine, and investment promotion platforms were presented during the event by Marlena Hurley, Managing Director, Political Risk Insurance & Reinsurance, DFC, Olga Sclovscaia, Regional Head Europe and Central Asia, MIGA; Oleksandr Gryban; First Deputy Governor of the National Bank of Ukraine Kateryna Rozhkova, Deputy Minister of Agrarian Policy and Food of Ukraine Markiyan Dmytrasevich; Dmytro Ushenko, Investment Team Lead, Advantage Ukraine; Tetyana Prokopchuk, Vice President, AmCham in Ukraine; Anna Derevyanko, Executive Director, EBA.
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