During the implementation of the first projects to introduce a mechanism for reducing the cost of maritime transport insurance in its territorial waters, Ukraine plans to expand such mechanisms to other types of exports.
This was announced in a statement on the government portal, the CFTS portal reports.
"Together with the insurance market, we are implementing the first projects involving a mechanism for reducing the cost of maritime transport insurance in the territorial waters of Ukraine. This will ensure the safety of maritime transport and increase the volume of Ukrainian exports. Our further joint steps will be aimed at expanding the implementation of similar insurance instruments to other types of exports," said Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
The new mechanism for insuring maritime transport in the territorial waters of Ukraine will reduce the cost of grain insurance by about 2.5 percentage points of the insurance rate, which will allow grain traders to save about UAH 100-140 per ton of cargo and generate an additional UAH 4.0 billion for agricultural producers.
The implementation of the maritime transport insurance mechanism will guarantee the safety of navigation and ensure the stability of the maritime transportation of products through the ports of Ukraine.
As the CFTS portal reported previously, in November 2023, Ukraine and a pool of British insurance companies set up a mechanism to make the temporary Black Sea corridor more accessible to exporters.
"As a result of the agreements between President of Ukraine Volodymyr Zelenskyi and British Prime Minister Rishi Sunak, Ukraine and a pool of British insurance companies have created a special mechanism. It will allow exporters of all products from Ukraine to receive a discount on the cost of insurance against war-related risks. This will make the Black Sea corridor more accessible to a wider range of exporters," Ukraine’s Prime Minister Denys Shmyhal said at the time.
The Ukrainian prime minister emphasized that the Cabinet of Ministers has allocated funds to cover possible war-related risks for shipowners. The mechanism involves the Export Credit Agency, Ukrgasbank, Ukreximbank, and a pool of 14 insurance companies.
As the CFTS portal reported earlier, the fund for insurance of civilian ships, which was created to encourage shipowners to send ships to Ukrainian Black Sea ports in the face of Russian aggression, was reduced during the drafting of the Ukrainian state budget for 2024. The total amount of compensation was initially expected to be up to UAH 20 billion, but only UAH 2 billion was budgeted for 2024 under the relevant article of the draft state budget (at least in its first reading).
