The World Bank’s political risk insurance agency, Multilateral Investment Guarantee Agency (MIGA), has entered a memorandum of understanding with Poland’s export credit agency, KUKE, to support Ukraine’s economic recovery.
The agreement, signed at the Ukraine Recovery Conference 2024, aims to bolster trade and foreign direct investment from Polish companies into Ukraine through various insurance collaborations.
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It facilitates joint insurance, parallel insurance and reinsurance arrangements, in line with Poland’s efforts to aid Ukraine’s reconstruction.
MIGA’s strategy includes working alongside public sector insurers to address the scarcity of private market insurance for war risks.
This move is a continuation of the cooperative efforts initiated at the 2023 Ukraine Recovery Conference in London, where MIGA and the US International Development Finance Corporation (DFC) agreed to insure Ukrainian projects together.
Since their agreement, the DFC and MIGA jointly insured a manufacturing project in Ukraine, with each entity providing around $25m in coverage against political risks, including war.
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By GlobalDataMIGA is also in discussions with other European export credit agencies to extend reinsurance support for projects in Ukraine, working with the Ukrainian Government and international stakeholders to facilitate risk mitigation and provide market insights.
MIGA is also one of the few providers of political risk insurance in Ukraine since the Russian invasion in February 2022, offering more than $215m in coverage for war and civil disturbance.
Through these initiatives, MIGA has aided both new and existing cross-border investors in Ukraine, ensuring the continuity of private sector operations and investments amidst the conflict.
MIGA executive vice-president Hiroshi Matano said: “During this time of immense difficulty caused by Russia’s invasion of Ukraine, we remain committed to expanding our support to the Ukrainian Government and the private sector.
“Our insurance and reinsurance products have played a vital role in sustaining the Ukrainian economy’s resilience during the ongoing war and supporting much-needed foreign investment.”
KUKE vice-president and CRO Katarzyna Kowalska said: “The combination of our capabilities will strengthen the shield against political and war risk available to not only Polish companies but also entities using Poland as a hub for establishing or expanding their business in Ukraine.”
In a separate development, last month, WTW collaborated with Ukrainian insurer Vu to introduce a facility that covers cargo and war-on-land risks within Ukraine.
