Authorities Plan To Attract Ukrainian Insurers Against Background Of Refusal Of International Companies To Insure Ships In Ukraine - Expert

The authorities plan to attract Ukrainian insurance campaigns against the background of the refusal of the largest global companies to insure military risks for ships in Ukraine.

Andrii Klymenko, head of the Institute for Black Sea Strategic Studies, announced this on Facebook, Ukrainian News Agency reports.

"A new unpleasant problem in the "grain corridor"... On January 3, 2023, we (unlike the usual picture of recent months) did not see in the Black Sea ships heading to the ports of the Odesa Region. Most likely, these are the consequences of the fact that International Group of P&I Clubs - an international association of mutual insurance - refused to reinsurance risks related to war from January 1, 2023. That is, from January 1, the region of Ukraine, Russia, Belarus and Moldova will not be extended or conclude new contracts in terms of losses/war damage. That is, one of the three policies required for marine transportation will not cover shipowner's liability risks related to war," he wrote.

Thus, according to the expert, it will become much more difficult to charter a ship to Ukrainian ports.

"The coordination council of representatives of the Ministry of Agriculture, the Ministry of Infrastructure, the Ministry of Economy, the Ministry of Finance, the Ministry of Foreign Affairs, Ukrzaliznytsia, the State Border Guard Service, the State Service for Food Safety and Consumer Protection, the State Customs Service, Ukrtransbezpeka, USPA and relevant associations have already discussed this problem and turned to the Cabinet of Ministers with a proposal to allow Ukrainian companies to pay abroad for reinsurance," he wrote.

As Ukrainian News Agency earlier reported, during the holiday weekend, December 31 - January 1, 9 ships with 432,000 tons of agricultural products for the countries of Africa, Asia and Europe left the "grain corridor" from the sea trade ports of Great Odesa.

On November 17, the Minister of Infrastructure Oleksandr Kubrakov announced that the Initiative for safe transportation of agricultural products across the Black Sea was extended for another 120 days.

On August 5, the first caravan with Ukrainian grain left the sea ports of Odesa and Chornomorsk.