Publication date: 31.05.2024
Investment insurance against military and political risks: new opportunities from the Export Credit Agency of Ukraine
Introduction
On January 1, 2024, Law of Ukraine No. 3497-IX "On Amendments to the Law of Ukraine "On Financial Mechanisms for Stimulating Export Activity" on Insurance of Investments in Ukraine against Military Risks" came into force. This legislative act enables the Export Credit Agency of Ukraine (ECA) to accept applications for investment insurance against military and political risks. This is an important step to support the investment climate in Ukraine, which will help attract new investors and develop the national economy. In this article, we will analyze the main provisions of the new legislation, the mechanisms of insurance implementation and its significance for the Ukrainian market.
The main part
Legislative framework
Amendments to the Law of Ukraine "On Financial Mechanisms for Stimulating Export Activity" allowed for the introduction of new mechanisms for insuring investments against war risks. Law No. 3497-IX stipulates that the Export Credit Agency of Ukraine has the right to insure investments against such risks as military conflict, terrorist acts, violent change of the constitutional order and other similar events. These innovations are aimed at increasing the level of investor protection and creating favorable conditions for business development in Ukraine. You may be interested in the following articles: legal advice, legal advice, analysis of documents, legal analysis of the situation, written advice, verification of documents by a lawyer, lawyers documents, online legal assistance, online lawyer, legal opinion, legal opinion of a lawyer, lawyer online.
Insurance products
The Export Credit Agency will offer two main insurance products:
- Direct investment insurance for investors: This product protects investors from losses caused by military and political risks, which helps to reduce financial risks when investing in the Ukrainian economy.
- Insurance of investment loans for banks: This product is designed for banks and financial institutions that provide loans to investors. It provides protection of credit funds against losses associated with military and political risks.
Types of risks covered
War risks that can be insured by the ECA include:
- Military conflict, including war or armed conflict, armed aggression, hostilities.
- Mass riots, violent change or overthrow of the constitutional order, seizure of state power.
- Terrorist attacks and sabotage caused by military conflicts or other events mentioned above.
- Occupation and annexation of territories.
Implementation mechanisms
The application process for political and military risk insurance is transparent and accessible to all stakeholders. The ECA has developed clear instructions and procedures for application, including the necessary documentation and requirements for applicants. In addition, to ensure the objectivity of risk assessment, the agency engages experts in the insurance and financial services sectors.
Conclusion.
The introduction of investment insurance against military and political risks by the Export Credit Agency of Ukraine is an important step towards improving the investment climate in the country. This innovation will help to attract foreign and domestic investors, develop the Ukrainian economy and increase financial security. Insuring investments against war risks is a necessary element for creating a stable and predictable business environment, which will allow Ukraine to become more attractive for investment and development of export-oriented enterprises.
