The Cabinet of Ministers of Ukraine has created a new mechanism for insuring ships against war risks. It will significantly reduce the current insurance premiums for carriers exporting and importing to Ukraine by sea. The relevant decision, which paves the way for cooperation with British reinsurance companies, was adopted at a Government meeting on 14 November 2023.

"It is strategically important for Ukraine to keep the Black Sea open for international trade. Following an agreement between President of Ukraine Volodymyr Zelenskyy and Prime Minister of the United Kingdom Rishi Sunak, Ukraine and a pool of British insurance companies have set up a special mechanism to reduce the cost of war risk insurance for exporters of all products from Ukraine. This initiative is a sign of confidence in our economy and demonstrates that the Government is doing everything to ensure that Ukrainian exporters have competitive conditions for exporting their products," said Prime Minister of Ukraine Denys Shmyhal.

"Ship insurance became possible thanks to cooperation with the leading British reinsurance companies – Marsh McLennan and underwriters Lloyd's of London through the launch of the Unity Facility. The total coverage under this programme is USD 50 million. This decision will primarily have a positive impact on the work of grain traders. The new mechanism will reduce the cost of grain insurance by about 2.5 percentage points of the insurance rate, which in turn will allow grain traders to save about UAH 100-140 per ton of cargo, and in total it will bring up to UAH 4.0 billion to agricultural producers," said Yuliia Svyrydenko, First vice Prime Minister of Ukraine and Minister of Economy of Ukraine.

According to her, these funds will be allocated to farmers, both in the form of an increase in the purchase price and additional purchases. Increasing the volume of Ukrainian exports by sea should contribute to additional growth of the Ukrainian economy.

"After Russia withdrew from the "grain deal", many cargo ships were trapped. The decision adopted by the Government will guarantee the safety of navigation, promote the stability of maritime transportation, and ensure the sustainable export of Ukrainian products through the ports of Ukraine," summed up Yuliia Svyrydenko.

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In the 2023-2024 marketing year, the forecast is to export about 50.7 million tonnes of grain. As of 18 October 2023, 7.9 million tonnes of grain were exported, 70% of which were by sea.ф