Poland To Insure Investors Involved in Rebuilding Ukraine
Poland will provide insurance coverage for investors involved in the reconstruction of Ukraine. Polish President Andrzej Duda has signed an amendment to the law that allows the Polish state insurance corporation, KUKE, to offer more effective assistance to private businesses interested in contributing to Ukraine's reconstruction.
The Ministry of Economy of Ukraine reported this development. According to Yulia Svyrydenko, Ukraine's First Deputy Prime Minister and Minister of Economy, "This is the first comprehensive insurance instrument that supports investments and the activities of Polish companies in Ukraine. We hope that this significant step by Poland will encourage the insurance market and other countries to provide guarantees to companies operating in Ukraine. As a result, this will facilitate attracting more investments and introduce new players into the Ukrainian private sector."
This Polish law essentially creates a program for Ukraine's recovery with the involvement of Polish businesses. The program includes three key points:
Secure trade with Ukraine: Insurance coverage spans a wide range of risks, protecting Polish companies from losses caused by non-payment for delivered goods or services. It also includes reinsurance for transport insurance and guarantees that protect banks issuing letters of credit.
Support for Polish companies' investments: Assistance for entrepreneurs in financing investments carried out in Poland for export to Ukraine and beyond. It also covers investments made directly in Ukraine, especially regarding mergers and acquisitions.
Support for Ukraine's development: Ensuring financing for investment projects carried out by Polish or foreign entrepreneurs for Ukrainian investors (both private and state-owned).
One notable aspect of this new Polish law is the provision for reinsurance by other insurers in cases where the risk is above average or commercial market reinsurance is unattainable. This will primarily affect the reinsurance of transportation risks by commercial insurers (including comprehensive coverage and third-party liability). Thanks to this, Polish entrepreneurs will be able to engage in transportation to Ukraine and participate in the reconstruction process more effectively.
The new Polish law also offers opportunities for insuring Polish branches of foreign companies on par with local companies. For Ukrainian companies, this provides the opportunity to expand their business in Poland on more favorable terms.
Kyiv is counting on Poland's substantial contribution to Ukraine's reconstruction, particularly in the restoration of the Kharkiv region, which is currently undergoing demining and active reconstruction of critical and social infrastructure.
Earlier, The Gaze reported that the European Investment Bank (EIB) is launching a new €400 million fund to assist Ukraine in its reconstruction efforts.
Additionally, Washington will provide Kyiv with an extra $1.3 billion to help Ukraine overcome the consequences of the full-scale invasion. The United States plans to invest over $520 million to assist Ukraine in repairing its energy grid, which has been under Russian attacks during the heating season, resulting in the destruction of half of it. Another $657 million will be directed toward "modernizing Ukrainian border crossings, railway lines, ports, and other critical infrastructure related to Europe, allowing Ukraine to export goods more efficiently through various routes.