Polish President Andrzej Duda signed an amendment to the law on export insurance guaranteed by the State Treasury, which, among other things, provides an opportunity for the Polish state insurance corporation KUKE to provide more effective assistance to private businesses interested in the Ukraine recovery effort.
This was reported by the press service of the Ministry of Economy of Ukraine, Ukrinform saw. Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, said:
“This is the first such comprehensive insurance tool that supports investments and activities of Polish companies in Ukraine. We hope that this important step by Poland will be an impefor the insurance market and other countries to more actively provide guarantees to companies operating in Ukraine. And as a result, this will contribute to the attraction of more investments and the entry of new players into the Ukrainian private sector.”
The law is the basis of the reconstruction program with the participation of Polish businesses.Over 400 companies in Poland have signed up for a program aimed at helping Ukraine rebuild after the war, the Polish Investment and Trade Agency (PAIH), a state body, has announced.
There are three points in this program. The first is safe trade with Ukraine. The insurance covers a wide range of risks, in particular, it protects Polish companies against losses caused by non-payment for delivered goods or services. Moreover, it includes reinsurance of transport insurance and a guarantee that protects the banks that issue letters of credit.
The second point is support for investments by Polish companies. Support for entrepreneurs in financing investments made in Poland for export to Ukraine and beyond. As well as those investments that will be flowing directly into Ukraine. This is especially relevant to new takeover and acquisition projects.
The third point is support for the development of Ukraine. Ensuring financing of investment projects implemented by Polish or foreign entrepreneurs for investors from Ukraine (private and public).
Among the new solutions is reinsurance by other insurers. In cases where the risk is above average or where it is not possible to obtain reinsurance on the commercial market. This will mainly concern the reinsurance of transport risks with commercial insurers. Thanks to this, Polish entrepreneurs will be able to carry out transportation to Ukraine and participate in the recovery process.
The new Polish law also provides opportunities to insure Polish branches of foreign companies on a par with local companies. For Ukrainian companies, this is an opportunity to expand business in Poland on better terms.
Ukraine is counting on Poland’s significant contribution to the reconstruction of Ukraine, in particular, to the restoration of Kharkiv region, where demining and active restoration of critical and social infrastructure is ongoing.
Even before the war, Poland and Ukraine shared strong economic ties, and trade between the countries has grown rapidly in recent years. In 2021, the value of Polish exports to Ukraine was €6.3 billion, while the value of imports from Ukraine was €4.3 billion.
