The mechanism of vessel insurance in the temporary corridor will be launched within two weeks

The mechanism of special insurance for vessels using the Ukrainian sea corridor, created by Ukraine jointly with the UK government and 14 British insurance companies, will start operating within two weeks. This was announced by Yuriy Vaskov, Deputy Minister of Communities, Territories and Infrastructure Development.

“How will it work? The market of insurers and shippers will be heard and felt through lower freight rates. When will this happen? I think within a few weeks,” Vaskov said.

Answering a clarifying question, he said that there is hope that the mechanism will start working “within two weeks.”

“There is a practice when it comes to insurance of important, non-standard risks, companies unite to have greater financial capacity. They have confirmed their readiness to create an insurance pool and an insurance fund, which Ukraine should also join with financial guarantees. This is an indicator for them. After that, the leading British insurance companies will join the pool, and the existence of this pool will allow insurers to provide shipowners with an insurance rate of no more than 1.25%,” explained Vaskov.

According to him, the issue of sufficient insurance coverage was discussed even before the launch of the Ukrainian maritime corridor.

“This was a key issue during the meeting of the top leadership of the state with British colleagues, with colleagues from the United States,” Vaskov said.

On November 16, off the coast of Odesa region, the Liberian-flagged bulk carrier Georgia S, which had left Pivdennyi port with a cargo of wheat, hit a sea mine. According to the Dumskaya newspaper, citing sources, the Georgia S, which sent a distress call in the evening while southeast of Zmeinyi Island, was not damaged at all.

“The mine, apparently an anti-personnel mine (they can swim), exploded a hundred meters away from the bulk carrier, which left Pivdennyi port in the morning. However, the captain did not assess the situation and raised the alarm,” the newspaper writes.

After all the circumstances were clarified, the bulk carrier continued to move along the established route. The grain carrier is now in the Romanian port of Constanta.

Tags: insurance, Black Sea grain corridor