Ukraine has Reached an Agreement with Global Insurers on Guarantees for Grain Transportation
Ukraine has successfully negotiated a deal with the international insurance broker Marsh McLennan. The agreement is intended to facilitate the transportation of Ukrainian agricultural products through the Black Sea, which is unlawfully blocked by Russia.
This information is reported by Financial Times.
It is noted that the international company Marsh McLennan will be able to offer insurance up to $50 million for each insurance case from Lloyd's of London firms.
Insurance is provided for vessels transporting agricultural products and will cover risks in case of losses caused by Russia's war in Ukraine.
Risks will be shared between the insurance company and the state of Ukraine. Collateral will be provided by letters of credit from Ukrainian state banks "Ukreximbank" and "Ukrgazbank." In turn, the German creditor DZ Bank will act as a middleman, confirming the collateral for foreign insurers. It is expected that insurance will reduce the cost of grain by approximately $2.8-3.9 per ton.
Kyiv aims to encourage international insurance companies to provide large sums to help rebuild Ukraine. According to expert estimates, this will cost about $411 billion, while it is noted that insurers offer Ukraine these amounts without any Western guarantees.
Earlier, The Gaze reported that on Wednesday 9 November, a commercial vessel flying the Liberian flag was attacked by a Russian missile as it approached a Black Sea port near Odesa. Three crew members were injured and one was killed.
According to Ukraine's Infrastructure Minister Oleksandr Kubarkov, the civilian vessel was supposed to deliver iron ore to China.
It is worth noting that since the beginning of a full-scale invasion, Russia illegally blocked Ukrainian ports, leading to a shortage of grain in global markets and its price increase.
Initially, a "green corridor" was ensured for exports, but Russia unilaterally withdrew from the agreement and announced that it would shell all civilian ships leaving Ukrainian ports.
However, Ukraine managed to develop alternative transit routes to continue the export of agricultural products.