UKRGASBANK’s vessel insurance deal for the Black Sea exports is one of the best in 2024, according to Global Trade Review.

Every year, Global Trade Review (GTR), the most influential publication in trade finance, chooses the best market offers for the previous year. The best deals are selected among trade, supply chain, and export-import finance transactions based on submissions sent to GTR.

This agreement allows ship-owners exporting agricultural production and other commodities through the Black Sea corridor to insure their vessels and make the sea route more accessible to exporters.

For reference: UKRGASBANK issued a letter of credit for USD 10 million with a tenor of up to three years in favor of ASCOT UNDERWRITING LIMITED, the British insurance underwriter. The applicant under the letter of credit is the Export Credit Agency, Ukraine.

The German DZ Bank confirmed the letter of credit, and the Ministry of Economy of Ukraine ensured the implementation of this agreement. This agreement is part of the Unity program, implemented by Marsh McLennan and Lloyd's of London in cooperation with the Government of Ukraine to provide up to USD 50 million in hull and separate protection & indemnity (P&I) war risk insurance in Ukraine's territorial waters. The insurance is also secured by another letter of credit issued by Ukreximbank.

“The creation of this public-private partnership, with insurers working in tandem with the Ukrainian government and its banks, will accelerate the urgent resumption of vital grain exports amid the ongoing effects of russia’s brutal conflict”, noted Marcus Baker, Global Head of Marine, Cargo & Logistics, Marsh. 

01.05.2024