France Joins Poland in Insuring Investments in Wartime Ukraine

The French state-owned company Bpifrance Assurance Export will insure its national businesses prepared to invest in Ukraine during wartime. Following Poland, France becomes the second European country to introduce such a state compensation mechanism to safeguard its investments.

This information was reported by the press service of the Ministry of Economy of Ukraine.

In particular, the announcement states that any company operating under French legislation and making long-term investments abroad in a new or existing company, or any credit institution providing banking credit to a foreign branch, is entitled to this investment insurance.

This mechanism protects investors or credit institutions making investment loans from risks such as property damage, non-payment, non-transfer, expropriation, or political violence.

"The insurance covers up to 95% of the investor's asset losses or debtor's obligations," the announcement specifies.

France is also continuing negotiations with partners regarding support for Ukraine's economy and the mobilization of innovative financial instruments for Ukraine's recovery.

"We have had numerous discussions and negotiations regarding insurance by France of its companies against war risks, and we finally have the result of this painstaking work. The French export credit agency has begun providing guarantees for companies interested in Ukraine's recovery. We see an increase in interest from the French commercial sector in working in Ukraine, so this decision is a signal to French companies that they can become more active in the Ukrainian market," said Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

Earlier in September, the Franco-Ukrainian Chamber of Commerce organized and held an online meeting on insuring investment risks for French businesses, titled "Introducing a Mechanism for Insuring Investments in Ukraine from Risks Associated with War." More than 150 leading French and Ukrainian companies that are already operating in Ukraine or considering entering the Ukrainian market participated in the event.

It is worth noting that a week ago, Poland became the first in Europe to introduce a state insurance program for its companies conducting business in Ukraine. The decision was made after a Russian missile struck a window factory owned by the Polish company Fakro in the western Ukrainian city of Lviv. The losses from the Russian missile strike are estimated at €6.5 million by the company.