Investment insurance against war risks: investment security as a key to improving the business climate in Ukraine

War risk insurance is an important tool for creating a favourable investment climate in Ukraine. 

In cooperation with international partners, the Government of Ukraine has developed a comprehensive system of investment insurance against war risks, which opens up new possibilities for protecting investors’ capital.

One of the key players in this market is the Export Credit Agency of Ukraine (ECA), which has been accepting applications for investment insurance against military and political risks since January 2024. The agency offers two main insurance products: for direct investments and for investment loans.

The ECA has already started to implement the insurance in practice: one of the first cases was the insurance of an investment in a gas turbine generator financed by a Ukrainian commercial bank.

An investor (both Ukrainian and foreign) can obtain insurance coverage if

• the investor owns more than 10% of the corporate rights to the investment project;
• the investment project is aimed at the development of the manufacturing and export industries;
• the investment objects are located in Ukraine;
• the investment project meets the requirements of the Law on Export Promotion.

In addition to the ECA, various international agencies, such as the U.S. International Development Finance Corporation (DFC) and the Multilateral Investment Guarantee Agency (MIGA), provide investment insurance for companies doing business in Ukraine. 

War risk insurance is an important factor in attracting international investment, as it provides additional guarantees of financial security for investors and encourages the development of infrastructure and export-oriented production.

The creation of an investment portfolio and war risk insurance can be a key factor in attracting the necessary capital into the country to help rebuild the Ukrainian economy.

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