By KYIV. Nov 22 (Interfax-Ukraine) – The Verkhovna Rada adopted bill No. 9015 at the final reading, allowing the Export Credit Agency (ECA) to insure investments of Ukrainian and foreign companies in Ukraine against war risks, Deputy Chairman of the Parliamentary Committee on Economic Development Dmytro Kysylevsky said on Facebook.
“The Verkhovna Rada adopted Law No. 9015 on war risk insurance. Its essence is granting the right to ECA 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,'” the initiator of the bill wrote.
As Kysylevsky told Interfax-Ukraine, 242 MPs voted for the document, with the required minimum of 226 votes.
The law comes into force on January 1, 2024.
Kysylevsky emphasized that before the law comes into force, the government of Ukraine must ensure the adoption, in agreement with the National Bank, of a regulatory act defining a list of war risks, as well as the conditions and procedure for insurance (reinsurance) of such risks when carrying out ECA activities.
In addition, according to him, it is necessary to significantly increase the charter capital of ECA at the expense of the state budget or with the assistance of international donors. In addition, the MP notes, ECA must “learn to reinsure risks.”
“If these three conditions are met, the mechanism will work. Without them, it won’t,” the co-author of the bill wrote.
According to him, the Ministry of Economy is currently communicating with MIGA, DFC and the EBRD, as well as with donors within the Multi-Donor Coordination Platform about the need to raise $100 million for reinsurance of Ukrainian ECA and $500 million for international insurance and reinsurance trust funds.
“Also, together with the Ministry of Economy and the Ministry of Finance, we will raise the issue of increasing the charter capital of ECA, including to insure investments against war risks,” Kysylevsky said.
