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April 4, 2022

Ukraine promises insurance pay-outs to ships damaged in war

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

The Ukrainian government has promised guaranteed insurance payment to cargo ships damaged in war while sailing through its portion of the Danube river, Reuters has reported.

Ukraine relies on the Black Sea ports, which have been blocked in the wake of the Russian invasion, to export nearly all its commodities such as steel, grain, and oilseeds. 

Danube river is the second largest river in Europe, which originates in Germany and passes through eight countries to the Black Sea. 

“We are talking about the possibility of fully-fledged work at only three Ukrainian seaports: Reni, Izmail, Ust-Dunaysk. Their role takes precedence,” the news agency said citing a social media post by the infrastructure ministry of Ukraine. 

In February, Russia launched a “special military operation” against Ukraine by land, sea and air, which has attracted severe criticism and unprecedented sanctions against Moscow. 

The government of Ukraine did not provide details for the insurance payment system and has asked the infrastructure ministry to come up with a plan. 

Notably, according to International Grains Council data, Ukraine was among the top four-grain exporter in the world during the 2020-21 season. 

In the 2021-22 season, Ukraine exported 43 million tonnes of grain and agriculture analysts estimate that the country could only export around one million tonnes of grain in the next three months. 

Last week, the National Bank of Ukraine called on nuclear risk insurers to stop their business with Russia and Belarus. 

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