- UK government helping plan war-risk insurance scheme which
will lead UK companies to do business in Ukraine
- Lack of available insurance currently a major barrier
preventing UK companies trading with and investing in Ukraine to
help it rebuild
- Business and Trade Minister The inks agreement today at
the European Bank of Reconstruction and Development
The UK will today sign a Statement of Intent on a European Bank
of Reconstruction and Development (EBRD) war-risk insurance
scheme for Ukraine. The EBRD’s effort, along with complementary
backing by other international financial institutions, over time
will help UK companies to do business in Ukraine and support its
reconstruction.
Ukraine is facing a major challenge to rebuild following Russia’s
illegal invasion, with the World Bank estimating it will cost
$411 billion. Private sector companies are crucial to that, with
architects, engineers, and construction companies need to rebuild
bridges for example, but many currently struggle to get the
insurance they need to be able to operate in the country.
The UK is leading the world in trying to address this by
improving access to war-risk insurance. It follows the Ukraine
Recovery Conference, hosted by the Prime Minister earlier this
year, during which we coordinated international partners to
announce the London Conference Framework to address the insurance
gap.
Speaking ahead of the signing, Business and Trade
Minister The said:
UK businesses have the expertise and desire to help Ukraine
rebuild. But too often a lack of insurance prevents our
world-class architects, engineers or lawyers, from doing that,
and hinders Ukraine’s recovery.
That’s where Government comes in – we are committed to breaking
down the barriers that get in the way of UK companies offering
their expertise. Today’s signing is another step forward in our
ongoing support for Ukraine on this issue.”
The EBRD’s scheme development will provide new support for
boosting the provision of insurance against war-related risks in
Ukraine. It was galvanised by the London Conference Framework and
is intended to kick-start insurance, firstly for the transport of
cargo vital via trucks to keeping trade flowing, with a view to
expanding it to cover more sectors as the scheme matures.
Business and Trade Minister The will sign the Statement
today alongside EBRD President Odile Renaud-Basso. They will also
discuss next steps to increase the availability of war-risk
insurance even further.
EBRD President Odile Renaud-Basso said:
We are very grateful for the UK’s interest in facilitating the
provision of insurance against war-related risks in Ukraine.
Relying on traditional risk-transfer mechanisms in the insurance
industry, the EBRD and its partners seek to build a sustainable
solution, which will bring relief to the domestic economy and
protect trade activities.
Encouraging the EBRD’s scheme is just one of the many ways the UK
is showing its support for the reconstruction of Ukraine.
The UK’s non-military support to Ukraine since the start of
invasion comes to £4.7bn. This includes over £4.1bn in fiscal
support, and over £640m in bilateral assistance.
The signing comes ahead of the upcoming Rebuild Ukraine
Conference and UK-Ukraine Infrastructure Taskforce meeting in
Warsaw, led by Minister for Industry , which will provide a key
moment for the UK and Ukraine to discuss and agree priority
reconstruction projects.
Minister for Industry and Economic Security said:
As co-chair of the UK-Ukraine Infrastructure Taskforce with
Deputy PM Kubrakov, I’m immensely proud of what the UK and
Ukraine have already achieved together – from delivering major
conferences to encourage private sector investment, to signing a
digital free trade agreement critical to supporting jobs and
livelihoods. I am also proud to have delivered the war risk
insurance package.
The UK is a key partner for Ukraine and we remain committed to
providing the crucial support it needs as it continues to rebuild
its infrastructure and economy.
Today also marks techUK and IT Ukraine’s Ukraine Tech Day which
is raising awareness of areas for further cooperation between the
tech sector and government in the UK and Ukraine. Ukraine Tech
Day is placing specific focus on defence tech, cyber security, ed
tech and skills, and the startup community. It comes following
the Prime Minister’s recent announcement of the UK-Ukraine
TechBridge, which will launch in the next couple of months and
will bring together the UK and Ukrainian tech sectors to harness
opportunities for innovation and collaboration.
Background
- The Statement of Intent shows UK support for the EBRD’s
continued technical and administrative development of the scheme,
with a further aim of driving more international interest in
future due to the UK’s status as a global thought leader on
insurance issues.
- The Ukraine Recovery Conference was held in London in June.
Details of the announcements to support Ukraine can be found on
gov.uk: https://www.gov.uk/government/news/uk-announces-new-tech-and-insurance-support-for-companies-helping-ukraine-rebuild–2
- The UK’s total military, humanitarian and economic support
for Ukraine now amounts to £9.3billion.
