The Ministry of Agrarian Policy is developing new mechanisms to protect port logistics from military risks
20 July 19:14
The Ministry of Agrarian Policy and Food of Ukraine, in collaboration with insurance companies, the agricultural sector, and relevant government agencies, is developing additional mechanisms to provide insurance coverage for port logistics and agricultural products against war risks, according to the ministry’s press service, as reported by "Komersant Ukrainian".
Taras Vysotsky, Ukraine’s Minister of Agrarian Policy and Food, noted that the extent of damage to port infrastructure, logistics facilities, and agricultural products resulting from the latest massive attacks requires further refinement of existing support mechanisms.
“Maritime exports are critical for Ukraine’s agricultural sector and economy. Amid intensifying Russian attacks, businesses must have clear and accessible protection tools,” the minister’s press service quoted him as saying.
The meeting participants paid particular attention to state mechanisms for supporting businesses in the area of war risk insurance, which are implemented by the Export-Credit Agency of Ukraine.
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What protection tools are currently available
Companies can currently take advantage of two instruments. The first is partial compensation for the cost of property damaged or destroyed as a result of Russia’s armed aggression. The maximum compensation amount is up to 30 million hryvnias for businesses operating in 10 high-risk regions.
The second instrument is compensation for insurance premiums under insurance contracts covering war risks. The state will compensate for the portion of the insurance cost exceeding 1% of the insurance rate, up to 3 million UAH, which enables businesses to significantly reduce the cost of insuring their production assets.
The Ministry of Agrarian Policy noted that the stable operation of the Ukrainian Maritime Corridor is critically important for the agricultural sector, as it ensures the export of products, generates foreign exchange revenue for the state, and supports global food security. Since the corridor opened in August 2023, 209 million metric tons of cargo have been exported through Ukrainian ports, of which 123 million metric tons were grain products.
The Ministry and business representatives agreed to compile statistics on damage to port infrastructure and agricultural products, analyze the use of existing insurance instruments, and prepare proposals to expand state support mechanisms and compensation for losses. The proposals will be submitted for further interagency discussion to facilitate the adoption of necessary decisions.
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