EU to introduce war insurance to attract business to rebuild Ukraine - Dombrovskis

Executive Vice President of the European Commission (EC) Valdis Dombrovskis stated this today in Strasbourg during a hearing in the European Parliament on the humanitarian and environmental consequences of the dam explosion in Nova Kakhovka, an Ukrinform correspondent reports.

The EC's representative said that most EU member states see the lack of war insurance as a barrier to private sector involvement in Ukraine's reconstruction. He stated that talks are underway with several partners, including the UK and the EBRD, on an instrument that could encourage insurance businesses to launch war insurance for Ukraine. The EU is also working with the EBRD to establish a EUR 40 million fund to support small and medium-sized enterprises.

He emphasized that reconstruction and rebuilding of Ukraine cannot wait until Russia's war is over. In some regions it can begin now. According to him, the EC will continue to closely monitor changes in the situation as the war progresses.

Dombrovskis stressed that the country's recovery process should be accompanied by continued reforms that will improve the business environment and bring Ukraine closer to EU membership.

EC's Executive Vice President noted that the public sector will play an important role in providing guarantees and other risk mitigation instruments, including insurance, to attract investment and the private sector to rebuild Ukraine. This will be particularly important for the resumption of trade and commercial flows. The EC is preparing to set up a fund to provide additional guarantees for export agencies.

He emphasized that it is important to keep Ukraine high on the agenda of European leaders and to continue the EU's unwavering support for the country. The EC will assess reforms and implementation of seven recommendations for Ukraine on the path to European integration.

According to the EC representative, Ukraine's progress in reforms is impressive, especially in the context of war. But there is still work to be done. The EC and the EU Delegation in Kyiv are working closely with Ukrainian partners on this.

Valdis Dombrovskis added that it is important that the EU sends a message to Ukraine and to its partners that it is ready to provide sustainable and predictable financial assistance to Ukraine after 2023. The EU will play a special role in rebuilding Ukraine. Reconstruction efforts must go hand in hand with reforms that will build a modern and resilient country that will move towards the EU. The EC is working on proposals in this area. They are likely to be accompanied by a mid-term review of the EU's multiannual financial framework.

He noted that these and other topics will be discussed next week in London, where an international conference on Ukraine’s reconstruction will be held.

As reported, since the start of Russia's military invasion of Ukraine, the EU has provided Ukraine with substantial political, economic, financial, humanitarian, and military assistance. The EU has provided Ukraine with unprecedented macro-financial aid of EUR 18 billion to ensure, together with other international and financial partners, sustainable and predictable financing of Ukraine's public sector in 2023. This is for state institutions to continue to perform their key social functions in the face of Russia's war.