Ukraine and British insurance companies have developed a mechanism for covering risks in the Black Sea corridor

Ukraine, together with a pool of insurance companies and the British government, has developed a mechanism for covering war risks in the Black Sea corridor, which will make it more accessible to exporters, - said Prime Minister of Ukraine D. Shmyhal.

"The agreements between President Zelenskyi and Prime Minister of Great Britain Rishi Sunak helped Ukraine, together with British insurance companies, to develop a mechanism that will reduce the cost of insurance against war risks for exporters of Ukrainian products, which will expand the possibilities of the Black Sea corridor," explained D. Shmyhal .

Loss coverage is guaranteed by the funds allocated by the Cabinet of Ministers. The Export Credit Agency, Ukrgasbank, Ukreximbank and 14 insurance companies are also involved in the insurance mechanism.

Cooperation with the leading British insurance companies - Marsh McLennan and underwriters Lloyd's of London allowed to launch the Unity Facility mechanism, the total coverage of which is 50 million dollars.

It is expected that the new mechanism will reduce the cost of the insurance tariff by 2.5%, which will save grain traders up to UAH 100-140/ton of cargo, and will bring Ukrainian agricultural producers an additional UAH 4 billion in the form of an increase in purchase prices and trade volumes. Increasing the volume of exports by sea will contribute to the recovery of the Ukrainian economy.

It was previously reported that the British insurance and reinsurance broker Miller, together with the technology company Clearwater Dynamics (CWD), with the support of the Ukrainian government, developed a military risk coverage tool for vessels in the Black Sea.

Risks are shared between insurers and the state of Ukraine, which bears the first part of any claims up to an undisclosed level. Letters of credit to state-owned Ukreximbank and Ukrgasbank will be provided as collateral. The German DZ Bank will act as an intermediary confirming collateral for foreign insurers.