Andrzej Duda, the President of Poland, signed an amendment to the law on export insurance, which allows the state-owned Insurance Corporation KUKE to provide more effective assistance to private business entities concerned in reconstruction of Ukraine, as reported by the Ministry of Economy of Ukraine. 

Yuliya Svyridenko, Minister of Economy, notes, “This is the first such comprehensive insurance tool supporting investments and activities of Polish companies in Ukraine. We hope that such a crucial step taken by Poland will be an impetus for the insurance market and other countries to more actively provide guarantees to companies operating in Ukraine. As the result, it will contribute to attraction of more investments and entry of new players into the Ukrainian private sector”. 

The law serves as grounds for Ukrainian Reconstruction Program with Polish business involved. It cover three aspects: 

• Safe trade with Ukraine. Insurance covers a wide range of risks, in particular, it protects Polish companies against losses caused by non-payment for delivered goods or services. There is also transport reinsurance and a guarantee that protects the banks that issue letters of credit. 

• Investment support of Polish companies. It guarantees support for entrepreneurs in financing investments implemented in Poland for export to Ukraine, as well as investments to be implemented directly in Ukraine, First of all, in the form of new absorption and acquisition projects. 

• Support for development of Ukraine. It provides security of financing of investment projects of Polish or foreign entrepreneurs for investors from Ukraine (both private and state-owned). 

New solutions include, inter alia, reinsurance by other insurers in cases where the risk is above average or if it is impossible to obtain reinsurance on the commercial market, related mainly to transport risks. Therefore, Polish entrepreneurs will be able to carry out transportation to Ukraine and to participate in the reconstruction process, the Ministry highlights. 

The new Polish law also facilitates insurance of Polish branches of foreign companies on a par with local companies. This will allow Ukrainian companies to expand their business on better terms. 

Source –

Leave a Reply

Your email address will not be published. Required fields are marked *