Ukraine prepares insurance mechanism to protect port logistics

Ukraine’s Ministry of Agrarian Policy and Food, together with representatives of the agricultural sector, insurance companies, and relevant government agencies, is working on additional insurance mechanisms to protect port logistics and agricultural products against war-related risks.

According to the ministry’s press service, the issue was discussed during a meeting chaired by Minister of Agrarian Policy and Food Taras Vysotskyi, with the participation of representatives from the Ministry for Communities and Territories Development, the insurance industry, and agricultural associations.

The minister stressed that the stable operation of the Ukrainian maritime corridor is critical for the agricultural sector, as it supports exports, generates foreign currency earnings, and contributes to global food security. Since the corridor was launched in August 2023, Ukrainian ports have handled exports of 209 mln tons of cargo, including 123 mln tons of grain.

Participants reviewed existing war-risk insurance instruments and compensation mechanisms for losses incurred by agricultural and logistics businesses as a result of Russian attacks on port infrastructure.

Businesses currently have access to two state support programs administered by the Export Credit Agency of Ukraine. The first provides compensation of up to UAH 30 mln for property damaged or destroyed by the war for companies located in ten high-risk regions. The second offers partial reimbursement of war-risk insurance premiums of up to UAH 3 mln.

Following the meeting, the participants agreed to assess the scale of damage to port infrastructure and agricultural products, evaluate the effectiveness of existing insurance instruments, and prepare proposals to expand state support.

Tags: export, agricultural products, Ukrainian ports, insurance, war