Ukraine Inks $50M Insurance Deal Amid Russia-Ukraine Conflict
Ukraine has secured an agreement with the global insurance broker and risk advisor Marsh McLennan, along with Lloyd’s of London registered brokers, to provide insurance coverage for ships exporting grains amid the Russia-Ukraine Conflict’s geopolitical risks.
On social media handle, the Ukrainian minister for the economy Yulia Svyrydenko announced that this $50 million program will insure ships against military risks [especially Russian attacks].
Notably, last week a Russian Missile strike on a bulk carrier entering the Ukrainian port of Yuzhny led to the killing of a pilot and the injury of three Filipino crew and a dockworker.
Following Russia’s withdrawal from the United Nations-brokered Black Sea Grain Initiative in July, the security situation for shipping in the region has become notably precarious. Both Ukraine and Russia have been targeting each other’s ports, exacerbating the risks faced by maritime vessels. In recent months, insurance premiums for ships calling on Ukraine have surged. Additionally, the ongoing 21-month conflict between the two East European neighbors has resulted in several merchant ships being caught in the crossfire.
Marine Cargo and War Facility
On 23 August 2023, March and Ascot Group, a global specialty (re)insurer, announced the first insurance placement for the new Marine Cargo and War Facility launched earlier in the same month, Marsh reported on its website.
The facility, created under the Black Sea Treaty, safeguards Ukrainian grain and vital food shipments in secure corridors. Insurers like Marsh and Ascot, including Lloyd’s of London registered brokers’ clients, extend coverage. With a cap of $50 million, the Marine Cargo and War facility ensures reliable coverage for ships exporting grain and designated food from Ukrainian ports, supporting humanitarian efforts and mitigating supply chain pressure.
Marsh’s David Roe emphasizes cargo and war insurance’s key role in resuming Ukrainian exports. Ascot’s Chris McGill notes high demand, supporting the initiative’s mission-driven approach for diverse needs.
