Ukraine has been able to develop a war risk insurance infrastructure, which the government plans to expand

This includes the first cases of investment insurance against war risks, the development of a ship insurance mechanism, work on the Ukrainian Development Fund and other steps.

This was stated by the Minister of Economy Yulia Svyrydenko, summing up the results of 2023 in the field of investment attraction.

In particular, the Ministry of Economy of Ukraine, together with British partners, has set up a mechanism for insuring ships against war risks. The total amount of insurance included in this mechanism is USD 50 mln. It is expected that this insurance will further increase the export of Ukrainian products by sea and reduce the cost of grain transport insurance to 1-1.25%.

The Investment Guarantee Agency MIGA has also insured its first investment, the M10 Industrial Park in the Lviv region. The agency also renewed insurance for a packaging manufacturer and a bank. MIGA is currently working to raise additional funds for the MIGA Sure Trust Fund. Contributions have already been received from Japan, the UK and Norway.

The US Corporation for International Development (DFC) will finance 5 projects worth USD 380 mln. Notably, the first project was insured against political risks in 2023 – the Lviv-based Superhumans Centre for Prosthetics, Reconstructive Surgery and Rehabilitation.
In addition, more than 14 national export credit agencies (ECAs) of other countries have opened limits for medium-term insurance of operations and investments in Ukraine and started to insure the risks of private investments of their companies. The total limit exceeds EUR 1 bln and is a first step towards attracting foreign private investors from partner countries.

The European Bank for Reconstruction and Development is working on a multi-hundred-million euro war risk insurance mechanism for property in transit and storage, involving the Ukrainian insurance market, and Ukraine’s partners in the European Commission are ready to provide appropriate guarantees.

In addition, this year the Ukrainian government expanded the mandate of the national export credit agency. Ukrainian companies investing in Ukraine can now obtain war risk insurance. However, the search for funds to recapitalise the ECA still lies ahead.

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