Ukraine continues to negotiate with partners to attract additional funding to insure investors’ war risks. This was discussed during a meeting between First Deputy Prime Minister and Minister of Economy of Ukraine Yuliia Svyrydenko and Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA) Hiroshi Matano.

“Ukraine now needs to unblock the inflow of private investment. But everyone understands that without reliable instruments to insure war risks, we will not see an active inflow of investments. Therefore, at the meetings of the Multi-Donor Coordination Platform, we will repeatedly raise the issue of accumulating additional resources to increase funding for war risk insurance programmes. This year, MIGA has already implemented two projects on war risk insurance in the real sector and two more in the financial sector. They are also working to raise additional funding from five countries by the end of the year. We have agreed to set up a working group to speed up and optimise the process of investor insurance,” said Yuliia Svyrydenko.

According to the First Deputy Prime Minister, significant progress has been made recently in expanding insurance coverage for business. MIGA recently approved a ten-year insurance package worth USD 9.1 million for the M10 industrial park project in Lviv region. This insurance deal is partially financed by donor countries through the Support to Ukraine’s Reconstruction and Economy (SURE) Trust Fund, supervised by MIGA.

“It is extremely important to change the perception of Ukraine as a continuous high-risk zone. One potential solution is to create a special trust fund aimed at launching global insurance and reinsurance of war risks. This fund could be jointly managed by the governments of partner countries in cooperation with Ukraine,” said Yuliia Svyrydenko.

In addition, export credit agencies of European countries are working on insuring their companies’ investments. Ukraine encourages the provision of investment insurance coverage to Ukrainian companies when they establish joint ventures with foreign partners.

“Investment insurance can increase the confidence of foreign companies in this type of cooperation. And this, in turn, should contribute to economic growth and the creation of new jobs,” Yuliia Svyrydenko continued.

The Ministry of Economy of Ukraine is working to consolidate investment projects in key sectors of the economy and already has a database of projects that fully meet the requirements of international financial institutions. They will be submitted for consideration to international ECAs and other capital market players.

“One of the main tasks of the Government this year is to support the private sector of the economy without waiting for the end of the war. Together with our international partners and financial institutions, we are working on the creation of the War Risk Reinsurance Fund, which will help bring large private reinsurers, international and Ukrainian insurance market operators to the market. This will be an extension of the instruments of DFC, MIGA and national export credit agencies,” concluded Yuliia Svyrydenko.