Ukraine’s Export Credit Agency (ECA) has emerged as a vital player in supporting the nation’s economy amid the ongoing war and in the anticipated post-war recovery phase.

Established in 2018, the ECA aims to bolster Ukrainian exports by providing insurance, reinsurance and guarantees for export contracts. The agency’s role has become even more critical given the severe impact of the war on Ukraine’s exports.

The ECA addresses one of the most significant challenges faced by Ukrainian exporters and investors: obtaining substantial insurance against war and political risk. With most international insurers reluctant to cover investments in Ukraine due to the conflict, the ECA has stepped in to fill this void. It now insures up to 85 percent of the value of foreign economic contracts, supporting 74 exporters across 93 new transactions, amounting to UAH 7.8 billion (€187 million). This coverage has increased from 16 percent to 45 percent of Ukrainian exports, reflecting the agency’s expanding influence.

In a strategic move to further support economic stability, the Ukrainian government has empowered the ECA to insure investments against specific war and political risks. These include risks associated with military conflicts, armed aggression and political instability, such as the violent overthrow of government or terrorist acts. The agency also covers political risks, such as expropriation of property and illegal revocation of licenses. This comprehensive risk coverage aims to attract both domestic and international investments, even amidst ongoing hostilities.

Recent legislation and government resolutions have enhanced the ECA’s capabilities. The Law of Ukraine No. 3497-IX, effective from January 1, 2024, authorized the ECA to insure investments against war and political risks. Following this, the Cabinet of Ministers approved detailed lists and procedures for such insurance, which are expected to stimulate investment by providing a safety net for investors.

In addition to direct support for exporters, the ECA collaborates with Ukrainian banks to facilitate loans for exporting producers. For instance, PrivatBank, backed by ECA insurance, offers loans up to UAH 10 million for purchasing raw materials and equipment needed for export production. This initiative not only supports current exports but also helps maintain and grow the production capacity necessary for economic recovery.

The ECA’s initiatives are crucial for Ukraine’s post-war reconstruction. By providing insurance and financial support, the agency helps mitigate the risks that deter investment, thereby fostering industrial production, creating jobs and generating tax revenues. These efforts are essential for stabilizing Ukraine’s economy, strengthening its defense capabilities and ensuring sustainable growth.

In summary, Ukraine’s Export Credit Agency plays a pivotal role in mitigating the economic impact of the war, promoting exports, and laying the groundwork for post-war recovery. Through comprehensive risk insurance and financial support mechanisms, the ECA ensures that Ukrainian businesses can continue to operate and expand, even in these challenging times.