The relevant statement was made by Ukrainian Deputy Prime Minister, Economy Minister Yuliia Svyrydenko during the event ‘Economic Policy of Ukraine. Recovery During the War’, an Ukrinform correspondent reports, referring to the ministry’s press service.
“Ukraine’s ECA has already started insuring against war risks. We have a specific case – a Ukrainian commercial bank issued a loan for the purchase of a gas turbine generator, and the ECA provided coverage for this investment. I am especially grateful that we have the first insurance of investments in the development of alternative power generation and support for the energy sector,” Svyrydenko noted.
The first company to have its loan agreement insured against war risks is FlexoRes, a leading manufacturer of flexographic and rotogravure printing products in Ukraine. The company signed an investment loan agreement with MTB Bank under the programme ‘Affordable Loans at 5-7-9%’ to purchase a mini thermal power plant.
Both Ukrainian and foreign investors can apply to the ECA to receive investment protection under certain conditions, in particular if they own more than 10% of equity rights in the project; invest in the creation of facilities or infrastructure for the development of processing and exports; the investment objects are located in Ukraine; and the goods to be exported meet the requirements of the law on export promotion.
The bank providing funds for investment can also insure its risks with the ECA, namely if the borrower is a resident of Ukraine; the loan is related to investments in facilities or infrastructure for the development of processing and export of goods (works, services) of Ukrainian origin; the facilities and infrastructure for which the investment loan is provided are located in Ukraine; and the goods to be exported meet the requirements of the law on export promotion.
A reminder that, in May 2024, the Export Credit Agency of Ukraine (ECA) began to receive applications for investment insurance against military and political risks, as provided for by the Amendments to the Law of Ukraine ‘On Financial Mechanisms for Stimulating Export Activity’, which came into force on 1 January 2024.
