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War risks insurance is main condition for attracting investments to Ukraine – expert

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12:30 02.08.2022

War risk insurance is the main condition for attracting investments to Ukraine, said former US Ambassador to NATO and Special Representative of the US Department of State for Ukraine (2017-2019) Kurt Volker at the Warconomic Talks meeting with the members of the European Business Association (EBA).

“In his opinion, covering military risks for investors should become a key issue in the coming months and years to attract investments to the Ukrainian economy. For this, according to Mr. Volker, governments of partner countries should direct a certain amount of resources to subsidize such insurance,” the EBA said on its website.

“The war waged by Russia challenged the Ukrainian economy and became another factor that shook the global economic environment. Stoppage of business operations, interruption of logistics routes and supply chains, closed exports – all these factors put pressure on the economy and increase inflation. In this context, financial support from the international community is very valuable, but Ukraine will need a lot of resources for recovery. War is an extraordinary situation, and therefore requires extraordinary efforts,” Volker said.

“Answering the question of whether US investors are ready to come to Ukraine, Mr. Volker noted that he saw substantial support and interest in Ukraine, in particular from the private sector, but it was currently not fully understood what can be guarantees of safety and return of investments, protection of investors’ interests. Currently, a practical guide is needed – how foreign investors can bring money into Ukraine even in war conditions,” the EBA said.