Ukraine – EU

The lack of war risk insurance is one of the obstacles to attracting private business to the recovery of Ukraine

The European Commission (EC) is working on launching a pilot mechanism for export counter-guarantees to Ukraine, as well as on solving the problem of insurance against war risks. This was announced by the EU Vice President at the debate in the European Parliament Valdis Dombrovskis, writes Interfax-Ukraine.

According to him, in most EU member states, the lack of military insurance is considered as one of the obstacles to attracting private business to the reconstruction of Ukraine. As Dombrovskis reported, the EC is currently negotiating with several partners, including the UK and the European Bank for Reconstruction and Development (EBRD) regarding a possible scheme to encourage the insurance industry to launch such policies for Ukraine.

In addition, the EC vice-president noted, the European Commission is discussing with the World Bank the possibility of allocating a €40 million loan for Ukrainian micro, small and medium-sized enterprises under European guarantees.

In addition, Swedish Minister for EU Affairs Jessica Rosewall announced at the debate that the next meeting of the steering committee of the Interdepartmental Coordination Platform of Donors (financial Ramstein) will be held in person on the sidelines of the conference on the restoration of Ukraine-2023 in London on June 21-22.

As GMK Center reported earlier, at the end of May, the Verkhovna Rada Committee on Finance, Tax and Customs Policy supported the bill, which should allow the Export Credit Agency (ECA) to insure investments of Ukrainian and foreign companies in Ukraine against war risks. Later, the parliament adopted it as a basis, it is currently being prepared for the second reading.

Also, on May 25, 2023, the Council of the European Union adopted a resolution that renews suspension of all duties, quotas and trade protection measures for Ukrainian exports to the EU for another year, until June 2024.