By KYIV. Nov 17 (Interfax-Ukraine) – The mechanism for special insurance of ships using the Ukrainian sea corridor, created by Ukraine jointly with the British government and 14 British insurance companies, will begin to operate within two weeks, Deputy Minister of Communities, Territories and Infrastructure Development Yuriy Vaskov said at Infrastructure Day 2023 organized by the European Business Association in Kyiv on Friday.
“How will this work? The market of insurers and shippers will be heard and felt through a reduction in freight rates. When will this happen? I think for several weeks,” Vaskov said.
Answering a clarifying question, he said that there is hope that the mechanism will begin to work “within two weeks.”
“There is such a practice, when it comes to insuring important, non-standard risks, companies unite in order to have greater financial solvency. They confirmed their readiness to create an insurance pool and an insurance fund, which Ukraine should also join with financial guarantees. This is an indicator for them. After this, leading British insurance companies will join the pool, and the presence of this pool makes it possible for insurers to provide shipowners with an insurance rate of no more than 1.25%,” Vaskov said.
According to him, the issue of sufficient provision of insurance risks was discussed even before the launch of the Ukrainian sea corridor.
“This was a key question during a meeting with the top leadership of the state, with British colleagues, with colleagues from the United States,” Vaskov said.
