Ministry of Economy of Ukraine supports the adoption by Parliament in the first reading of draft law No. 9015 On Insurance of Investments in Ukraine against Military Risks. This law should remove the existing restrictions on the insurance of investments of Ukrainian companies in the domestic market by the Export Credit Agency (ECA) in the context of military operations and post-war recovery. This was announced by Yuliia Sviridenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
"The recovery of the Ukrainian economy will be largely driven by private investment. At the same time, Ukrainian investors are now in unequal conditions compared to foreign ones. Domestic companies cannot insure their investments in Ukraine; this mechanism is available only to foreigners through their national ECAs. The draft law adopted as a basis and in the first reading by the Verkhovna Rada eliminates the gaps that limit the possibility of insuring domestic investments by the Export Credit Agency (ECA). After the draft law is adopted in full and comes into force, Ukrainian companies will be able to insure military risks through the ECA mechanisms," explained Yuliia Svyrydenko.
According to her, the Export Credit Agency (ECA) can currently support insurance and lending only for export contracts. The new draft law introduces changes that will allow the ECA to insure investments in the domestic market, provided they are used to create facilities and infrastructure necessary for the development of the processing industry and export of goods of Ukrainian origin.
The mechanism of war risk insurance should be available on the domestic market for both Ukrainian and foreign investors. Not only large enterprises, but also small and medium-sized businesses will be able to use it.
"We continue to work with donors to increase the ECA's authorised capital to enable the agency to implement more war risk insurance projects. We are also working with foreign partners to expand the possibilities of war risk insurance programmes for those investors who are ready to invest in Ukraine now. After all, we have to start rebuilding the Ukrainian economy now, without waiting for the war to end," summed up Yuliia Svyrydenko.
PJSC "Export Credit Agency" - Private Joint Stock Company "Export Credit Agency" (ECA) was founded in 2018. The sole founder and shareholder of ECA is the state represented by the Cabinet of Ministers of Ukraine. The corporate rights owned by the state in the authorised capital of ECA are managed by the Cabinet of Ministers of Ukraine through its authorised management body - the Ministry of Economy of Ukraine.