What insurance mechanisms for military and political risks are available to private investors in Ukraine
26 Jun 2023

An important role in creating mechanisms for the distribution and reduction of risks for investors during a full-scale Russian invasion of Ukraine is assumed by the community of international organizations and donors, which introduces appropriate mechanisms for insurance and guaranteeing investments in Ukraine.

The World Bank Group’s multilateral investment guarantee agency, MIGA, has established a Trust Fund to Support Ukraine’s Reconstruction and Economy, which will enable the agency to provide trade finance guarantees, wartime bank reserve insurance, and political risk insurance to support post-war recovery.

The first registered project in Ukraine that can receive insurance guarantees from MIGA in the amount of $10 million is the construction project of Lviv Industrial Park M10, which is implemented by the Dragon Capital group of companies.

You can submit a preliminary application for MIGA warranty coverage here:
https://ebizprd.worldbank.org/index.html…

The U.S. government also supports investment insurance of the Ukrainian economy through the U.S. International Development Finance Corporation and the U.S. Agency for International Development (USAID Ukraine).

On April 12, 2023, DFC and the United States Agency for International Development (USAID) signed a Memorandum of Understanding with the Government of Ukraine to support attracting investment to Ukraine and promote the country’s economic recovery.

In addition, the United Kingdom’s National Export Credit Agency (UKEF) has allocated up to £200 million to cover political and military risks for British investors considering opportunities to invest in Ukraine.

The German Ministry of Economics provides insurance cover through the Investment Guarantee Scheme, administered by PwC.

Poland provides investment insurance for Polish companies in Ukraine with the help of the Polish export credit agency KUKE.

 

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