The Sea route to become more accessible for exporters: UKRGASBANK became a partner in a unique vessel insurance agreement for the Black Sea exports

The authorities of Ukraine, in collaboration with the government of the United Kingdom, international insurance companies, and the world’s leading insurance broker Marsh, have agreed on a special unprecedented mechanism to insure vessels going through the Black Sea corridor.

This will make the Black Sea corridor more accessible to a wider range of exporters (not only agricultural), which is crucial, especially during the war.

How does this mechanism work?

UKRGASBANK issued a letter of credit for USD 10 million with a validity period of up to three years in favor of the British insurer. The applicant under the letter of credit is the Export Credit Agency.

Such a mechanism will insure vessels and their cargo traveling through the Black Sea ports, as well as provide insurance for the risks inherent in such transportation.

"Undoubtedly, this deal will have a predominantly positive impact on the operations of agricultural companies. However, it will also facilitate the transportation of other products by Ukrainian exporters, as the mechanism is not limited to agricultural production, unlike the grain corridor. Free navigation in the Black Sea is strategically important for our country. We express gratitude to the Ukrainian defence forces for making it possible, and, on our part, we are doing our utmost to strengthen the economy of Ukraine," noted Rodion Morozov, Acting Chairperson of the Management Board of UKRGASBANK."

02.01.2024