Investment insurance law against war risks, payments for destroyed housing

Law on investment insurance against war risks published

On 23.12.2023, Law No. 3497-IX “On Amendments to the Law of Ukraine “On Financial Mechanisms for Stimulating Export Activities” on Insurance of Investments in Ukraine against Military Risks” was officially published.

Let us please remind you that under this law, the Export Credit Agency (ECA) will be authorized to insure investments against military and political risks, including with funds from foreign organizations and states.

The list, as well as the terms and procedure for insurance and reinsurance of these risks by ECA, will be determined by the Cabinet of Ministers with the approval of the NBU within three moths from the date of publication of the Law.

The law will come into force on 01.01.2024.

Compensation payments for destroyed housing as a result of a war: what is provided?

Compensation payment to citizens who lost their homes as a result of the war will begin on 27 December 2023, according to Deputy Prime Minister for Recovery of Ukraine.

Payments are received through the eRecovery portal in Diia. The official explanation of the procedure can be found here.
In the future, it is also expected that it will be possible to use the certificates to purchase materials and services for building a house.

The EU is preparing a contingency plan for financing Ukraine

According to the Financial Times, the European Union is preparing a plan to finance Ukraine in amount of up to 20 billion euros for the February summit.

The plan envisages the European Commission placing bonds under guarantees of the member states. Such mechanism does not require consent of all EU countries, which means that the probability of blocking such plan is low.

Alternatively, the EU is considering to continue macro-financial support, due to which Ukraine received 18 billion euros in 2023, however, this option requires the consent of all EU members.