Ukraine interested in expanding insurance programs to all priority economy sectors – Marchenko

Minister of Finance of Ukraine Sergii Marchenko discussed the attraction of investments to Ukraine through the mechanism for insuring against war risks with MIGA representatives.

This is stated in the press release by the Ministry of Finance of Ukraine following the minister’s meeting with Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group Hiroshi Matano and Vice President of Operations of MIGA Junaid Ahmad.

"Insuring investments against war risks is an important step in increasing the confidence of foreign investors in our country. I am grateful to MIGA for establishing the SURE war risk insurance trust fund, which helps to implement insurance projects in Ukraine. Since the beginning of the full-scale war, MIGA has issued guarantees to Ukraine totaling USD 196 million" Marchenko said.

The parties discussed further prospects for the development of cooperation in the context of attracting foreign direct investment to Ukraine through the mechanism of war risk insurance.

The donors of the SURE Trust Fund are Japan and the United Kingdom with contributions of USD 23 million and USD 25 million respectively.

The Minister of Finance also noted the agency's role in supporting Ukrainian banks. In 2023, MIGA provided guarantees for the International Finance Corporation's Global Trade Finance Programme in the amount of USD 20 million and the EBRD's Trade Finance Programme in the amount of USD 10 million, which will support trade operations involving Ukrainian banks Ukreximbank, Ukrgasbank and Oschadbank.

The Ministry underscores that in 2023, MIGA provided additional guarantees to ProCredit Holding in the amount of EUR 47.5 million to cover an increase in equity investments; completion of the first stage of construction of Lviv Industrial Park in the amount of EUR 9.2 million; and CANPACK S.A. in the amount of USD 13.96 million to increase the share capital of the company engaged in the production of light metal packaging, metal processing, etc.

At the meeting, the parties discussed the implementation of new war risk insurance projects in the near future. Marchenko noted that Ukraine is interested in expanding insurance programs to all priority sectors of the country's economy.

Photo: Ministry of Finance