By the results of the meeting of the Committee of the European Business Association on the restoration of Ukraine with the deputy head of the ECA (Export Credit Agency of Ukraine) Oksana Ocheretyana (January 25, 2023). 

From January 1, 2024, the Law of Ukraine No. 3497-IX (22.11.2023) (On Amendments to the Law of Ukraine “On Financial Mechanisms for Stimulating Export Activity” regarding the insurance of investments in Ukraine against war risks) entered into force, hereinafter referred to as the Law

The ultimate goal of the Law is to regulate insurance and reinsurance by the Export Credit Agency of Ukraine (ECA):  

  1. export loans, as well as insurance and reinsurance against war and/or political risks of loans of Ukrainian companies related to investments in facilities and infrastructure for processing industry and the export of goods (works, services) of Ukrainian origin. 
  1. direct investments from/to Ukraine against war and/or political risks.  

The deputy head of EKA, Ms. Oksana Ocheretyana, provided an approximate list that can be approved by the Cabinet of Ministers of Ukraine. For example, war risks: occupation, hostilities, annexation, bombing, etc. Political risks: expropriation, nationalization, forced alienation, moratoriums, bans, etc.  

There is hope that the Law can really start working in 5-6 months (June-July 2024). Firstly, the Cabinet of Ministers of Ukraine has to determine the list of war and political risks, as well as the conditions and procedure for insurance (reinsurance) of such risks (agreed by the National Bank of Ukraine) until the end of March 2024. And then the Ministry of Economy, ECA and other ministries must bring their regulatory acts into compliance with the Law (we hope that it will take no more than 2-3 months).   

One of the problematic issues that must be resolved by state bodies is that ECA is limited in providing insurance guarantees with its own capital, which currently is about UAH 2 billion and from which insurance guarantees for about UAH 700 million have already been provided. The Ministry of Economy should solve this issue either by recapitalization, or by selling shares (up to 49%), or raising capital in another way.  

Interlegal Law firm will carefully monitor and inform our clients about further steps taken by the state in the implementation of this Law, very important both from the point of view of attracting investments and from the positions of strengthening Ukraine’s export opportunities.  

If you have questions for both our lawyers and/or the management of the Export Credit Agency of Ukraine (ECA), please, do not hesitate to contact us.

Denys Stadnichenko, business development manager at Interlegal

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