Ukraine: export, investments, reconstruction
Poland is the first country in Europe whose regulations related to export and investment insurance took into account the war in Ukraine, which makes it possible to comprehensively support the expansion of Polish business in this country and at the same time actively participate in its reconstruction and modernization.
“On September 28, the amended Act on insurance guaranteed by the State Treasury, entered into force, allowing KUKE to again provide protection for investments of Polish companies in Ukraine, despite the ongoing war there. The legislator decided that although the risk is significant, for the sake of the state's interest, Polish entrepreneurs will be provided with insurance covering 100% of their investment expenditure as well as banks for the financing provided.
Poland is also a pioneer in initiating war risk insurance for the transport industry. Polish and Western shipping companies do not enter Ukrainian territory because it is impossible to insure the related risks on the commercial market and Ukrainian entities are responsible for all transport. KUKE will be the first institution to reinsure casco and cargo cover for Polish carriers issued by Polish insurers. However, the consent of the European Commission for such instrument is necessary.”
The new solutions include the reconstruction programme of Ukraine, consisting of three pillars:
The first pillar is supporting the current operations of Polish companies. It is worth recalling that KUKE continues to insure the export of goods throughout the war being an exception among export credit agencies. This pillar also includes transport insurance.
The second pillar is to insure the investments of Polish companies in Ukraine against political risk (including war) and to guarantee to Polish banks the repayment of financing granted for investments, e.g. in the project finance formula or to finance acquisitions. This pillar also includes encouraging foreign investors to locate production or branches in Poland in order to conduct business in Ukraine and other markets. KUKE is able to guarantee the financing of such investments (Pillar II) and at the same time support their export (Pillar I).
The third pillar is directly related to the reconstruction and modernization of Ukraine. KUKE can find financing and guarantee its repayment to financial institutions in exchange for inclusion of Polish enterprises into projects like the reconstruction of destroyed energy or road infrastructure, construction of new public utility facilities. KUKE will become involved if at least 30 percent work and supplies of components will come from Poland. Support may therefore apply to producers from the entire spectrum of industries, as well as service, design and construction companies.