The Export Credit Agency (ECA) has received its first application for insurance of investments of a Ukrainian company against war risks and is currently actively processing it, ECA Chairman Ruslan Hashev announced.
“This year's key innovation was the initiative to insure against military and political risks. We have already introduced these products and are offering them to potential clients. We even have the first application for investment insurance from a Ukrainian company, which we are currently actively processing,” said Hashev.
According to him, the agency has also received several other similar applications.
“We are ready to cooperate with both Ukrainian and foreign investors within the framework of this program. We are already providing consultations on these products. We see certain aspects that require attention for successful implementation, and we are preparing proposals for amendments to regulatory documents to facilitate access for Ukrainian investors, foreign investors, and Ukrainian banks that provide financing for investment projects in connection with the risks of war,” he added.
Gashev also explained that military risks include drone or missile attacks on a company, which could damage production equipment and temporarily halt operations. He also pointed to political risks, which could include the revocation of a company's licenses, which could lead to the cessation of its operations.
ECA, established in 2018, aims to protect Ukrainian exporters from the risks of insolvency and financial losses. The agency is a state-owned enterprise, the founder and shareholder of which is the Cabinet of Ministers of Ukraine.
The government approved the list of military and political risks, as well as the conditions and procedure for insuring these risks by the ECA on April 9, 2024.
