This year, the law of Ukraine dated November 22, 2023, No. 3497-IX, came into force, expanding the scope of the Export Credit Agency (ECA), including insurance of direct investments and investment loans for the development of export-oriented enterprises. The list of military and political risks, as well as the terms and procedures for insurance/reinsurance, must be determined by the resolution of the Cabinet of Ministers of Ukraine, which is currently being developed by the Ministry of Economy of Ukraine and the National Bank. This document is planned to be published in the coming months.
In connection with the implementation of the mentioned law, the ECA is preparing several products that enterprises will be able to use this year:
- Insurance of international and national direct investments in Ukraine and dividends;
- Insurance of loans related to investments.
One of the key criteria for accessing this type of insurance is the creation of export potential as a result of investments.
Among the possible political risks, events such as expropriation, forced alienation, unjustified revocation of licenses, non-fulfillment of obligations by the state, currency conversion issues, etc., can be highlighted. In the field of military risks, important events include military conflict, hostilities, violent changes in management, occupation, annexation, and other similar events.
Compensation is provided in case of a complete cessation of activities according to the business interruption principle, which means reimbursement of the difference between the cost of investments before and after the event. More detailed information will be known after the publication of the relevant draft resolution of the Cabinet of Ministers.
