The Export Credit Agency of Poland, KUKE, has for the first time insured the production complex of a Polish company in Ukraine. The value of the insured object exceeds 45 million dollars.
This is the first collaboration between KUKE and the investment guarantee agency of the World Bank Group, MIGA, following the signing of a memorandum of understanding at the Ukraine Recovery Conference 2024 in Berlin with the participation of the Ministry of Economy of Ukraine.
“This agreement is an important signal for potential investors that it is possible and necessary to invest in the Ukrainian economy right now. We have both instruments to support investors and a developed infrastructure for insurance against war risks. Our next step is a comprehensive national system of insurance against war risks, which will help provide affordable insurance not only for the private sector but also for the population,” said the First Deputy Prime Minister of Ukraine and Minister of Economy, Yulia Svyrydenko.
The political risk insurance provided by MIGA and reinsured by KUKE covers potential losses related to war risks. Katarzyna Kowalska, Deputy Director General of KUKE, noted that this landmark operation is the first case of insuring Polish investments in Ukraine since the beginning of the full-scale war.
Specifically for KUKE, this is also the first reinsurance operation regarding political risks related to foreign direct investments in Ukraine undertaken for an investor. It is also the first reinsurance operation in history concluded with a multilateral financial institution.
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The memorandum of understanding between MIGA and KUKE, signed at the Ukraine Recovery Conference 2024 in Berlin, provided a basis for cooperation within projects through joint insurance, parallel insurance, and reinsurance.
This agreement reflects Poland's efforts to support Ukraine's reconstruction and MIGA's strategy to cooperate with state insurance organizations in insuring against political and war risks. MIGA has provided insurance against risks in Ukraine, ensuring over $215 million in insurance coverage since the beginning of the full-scale invasion.
