MIGA and KUKE will jointly support Polish investments in Ukraine and other markets
KUKE signed a memorandum of understanding with The Multilateral Investment Guarantee Agency of the World Bank Group (MIGA), to support and encourage trade and foreign direct investments by Polish companies in Ukraine and other countries. The agreement, signed at the Ukraine Recovery Conference 2024, provides a framework for cooperation on projects through joint insurance, parallel insurance, and reinsurance arrangements. This agreement reflects Poland’s strong desire to support Ukraine’s reconstruction and MIGA’s strategy of partnering with public sector insurers given the lack of private market insurance for war risks.
"The combination of our capabilities will strengthen the shield against political and war risk available to not only Polish companies but also entities using Poland as a hub for establishing or expanding their business in Ukraine. We see strong interest on the Polish side in developing economic ties with Ukraine as our export dynamics proves, though the risks stemming from the ongoing war deter from investing on a larger scale. KUKE was leading the ECA community in opening up the Ukrainian market to export and investment cover. We are ready to insure commercial, political and force majeure risks of planned investments as well as the existing ones to make entrepreneurs feel safe and encourage them to accelerate their involvement in recovery of Ukraine. This is our priority, but then we hope for joint transaction in other markets where we can assist Polish companies to carry on sustainable investments and mitigate their risks."
"During this time of immense difficulty caused by Russia’s invasion of Ukraine, we remain committed to expanding our support to the Ukrainian government and the private sector. Our insurance and reinsurance products have played a vital role in sustaining the Ukrainian economy’s resilience during the ongoing war and supporting much needed foreign investment."
MIGA is also exploring reinsurance support for Ukrainian projects with other European export credit agencies. The Agency has been collaborating with the Ukrainian government, development partners, and the international investment community interested in risk mitigation and market insights.
MIGA has been among very few providers of political risk insurance in Ukraine, including cover for war and civil disturbance, issuing more than $215 million in coverage since the Russian invasion of Ukraine in February 2022. MIGA’s coverage was made possible by donor contributions to the Support for Ukraine Reconstruction and Economy Trust Fund (SURE TF) which complements MIGA’s own risk capacity. Through these efforts, MIGA has supported new and existing cross-border investors in Ukraine. MIGA’s guarantees serve as a key risk mitigation tool, ensuring the continuity of private sector operations and investments for the country’s continued economic activity during the ongoing conflict.
