In the near future, the implementation of a pilot project worth USD 30 million will begin. This was announced by Oleksandr Hryban, Deputy Minister of Economy of Ukraine.

Ukraine has agreed with MIGA to launch an investment insurance mechanism during hostilities. 

“The Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group, is ready to offer a pilot project worth USD 30 million for Ukraine. This amount has already been allocated, and they are ready to start cooperation with us even today. So, first of all, we will take one investment project and use it to polish all the peculiarities of providing guarantees for foreign investors. MIGA already has such a tool as Political Risk Insurance and there is War Risk Insurance as part of this tool. The positive thing is that their insurance products are suitable for Ukraine, meaning that it will not be necessary to invent something new from scratch,” said Oleksandr Hryban, Deputy Minister of Economy of Ukraine.

According to him, the amounts for coverage will be increased next year. MIGA’s total portfolio is USD 24 billion. It is assumed that after the completion of structuring the World Bank’s trust fund, which will be designated for the restoration of Ukraine, our state will receive USD 17 billion for the restoration of critical infrastructure and stimulation of economic development. Part of this amount will be directed specifically to the insurance of investors’ risks.

“Next year, we have to receive USD 36 billion from partner countries through the mediation of the World Bank to cover the budget deficit and another USD 17 billion for recovery. In the framework of these USD 17 billion, a part of the amount will be directed to the insurance of investors’ risks,” Oleksandr Hryban continues. “It is necessary to understand that the biggest multiplier for the economy will be the funds aimed at attracting investments. Now we will start with USD 30 million, and the amount of funds allocated for the next year will depend on how we implement this pilot project. I think that the amount can be increased somewhere to USD 1 billion in 2023, or become even more if such an instrument is in demand among investors. At the same time, the amount of insurance coverage will be at least 90% of the sum invested.”