Verkhovna Rada adopts draft law on ECA's insurance of investments against war risks
Kyiv • UNN
The Verkhovna Rada of Ukraine has passed a law authorizing the Export Credit Agency to insure investments against war risks, which will come into force on January 1, 2024. The law aims to compensate Ukrainian investors and industrialists for losses related to the conflict.
The Verkhovna Rada has adopted in its entirety the draft law No. 9015 on war risk insurance. Its essence is to authorize the Export Credit Agency of Ukraine to insure investments against war risks. This was announced by the Deputy Chairman of the Verkhovna Rada Committee on Economic Development and one of the initiators of the bill Dmytro Kysylevsky on Facebook, UNN reports.
%%QUOTE_TITLE%%Today, the Verkhovna Rada adopted the law No. 9015 of my authorship on war risk insurance. Its essence is to authorize the Export Credit Agency of Ukraine to insure investments against war risks. Such a policy will allow Ukrainian investors and industrialists to count on compensation for losses in the event of an "arrival- Kysylevsky wrote.
He said that foreign companies can now receive such a service through international financial organizations such as MIGA or DFC. After the law is signed by the President, Ukrainian companies will also be able to do so.
"The law comes into force on January 1, 2024. By this time, the Cabinet of Ministers must ensure the adoption of a regulatory act in agreement with the National Bank of Ukraine that defines the list of military risks, as well as the conditions and procedure for insurance (reinsurance) of such risks in the implementation of ECA activities," Kysylevsky said.
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The MP also noted that it is important to significantly increase the authorized capital of the ESA.
"This should be done at the expense of the State Budget of Ukraine or with the assistance of international donors. ECA should learn to reinsure risks. If these three conditions are met, the mechanism will work. Without them, it will not," Kysylevsky wrote.
According to him, the Ministry of Economy is currently communicating with MIGA, DFC and the EBRD, as well as with donors within the framework of the Multi-Donor Coordination Platform, on the need to raise $100 million for reinsurance of the Ukrainian ECA and $500 million for international insurance and reinsurance trust funds.
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"We will also raise the issue of increasing the authorized capital of the ECA , including for insuring investments against war risks, together with the Ministry of Economy and the Ministry of Finance. The introduction of a mechanism for insuring investments against war risks is part of the Plan for the Restoration of the Processing Industry. It also includes incentives for industrial parks, localization requirements for public procurement, compensation for a share of industrial investment through taxes, and other initiatives" - Kysylevsky said.
