The President of Poland Andrzej Duda signed an amendment to the law on export insurance guaranteed by the State Treasury. This decision, among other things, allows the Polish state-owned KUKE Insurance Corporation to provide more effective assistance to private businesses interested in rebuilding Ukraine.

“This is the first such comprehensive insurance instrument that supports investments and activities of Polish companies in Ukraine. We believe that this important step by Poland will be an impetus for the insurance market and other countries to more actively provide guarantees to companies operating in Ukraine. As a result, this will help attract more investment and new players to enter the Ukrainian private sector,” stated Yuliia Svyrydenko, First vice Prime Minister and Minister of the Economy of Ukraine.

The law is the basis for the reconstruction of Ukraine with the participation of Polish business. In fact, with this law, Poland created a program for the restoration of Ukraine with the participation of Polish business.

The program includes three points:

• Secure trade with Ukraine.

The insurance covers a wide range of risks; in particular, it protects Polish companies from losses caused by non-payment for goods delivered or services rendered. It also includes reinsurance of transport insurance and a guarantee protecting banks issuing letters of credit.

• Support for investment by Polish companies

Supporting entrepreneurs in financing investments made in Poland for export to Ukraine and beyond. As well as those investments, that will be implemented directly in Ukraine. This is especially true for new merger and acquisition (M&A) projects.

• Support for the development of Ukraine

Providing financing for investment projects implemented by Polish or foreign entrepreneurs for investors from Ukraine (private and state-owned).

New solutions include reinsurance by other insurers. In cases where the risk is above average or where it is not possible to obtain reinsurance in the commercial market. This will mainly concern the reinsurance of transport risks with commercial insurers (including hull and third-party liability insurance). As a result, Polish entrepreneurs will be able to transport goods to Ukraine and participate in the reconstruction process.

The new Polish law also provides for the insurance of Polish branches of foreign companies on an equal footing with local companies. For Ukrainian companies, this is an opportunity to expand their business in Poland on better terms.