Ukraine nears deal with global insurers to cover grain ships

Ukraine is finalizing a scheme with global insurers to cover grain ships traveling to and from its Black Sea ports, a vital step in the country’s attempts to create a safe corridor for exports after Russia withdrew from an UN-brokered deal last month, reported from the Financial Times.

Oleksandr Gryban, special envoy for Ukraine’s economy ministry, told the Financial Times that the deal was "currently being pursued and actively discussed” between the relevant ministries, as well as local banks and international insurance groups including Lloyd’s of London.

The scheme could be put in place as early as next month, and could see as many as five to 30 ships covered to travel through what he described as the "danger spot” of Ukrainian waters.

"It depends on how the structure goes and what the level of risk-sharing is going to be between the government and private insurance companies,” said Gryban.

Under the cover of Ukrainian onshore defense systems, a German/Chinese-owned cargo ship last week made the first commercial journey out of Odesa since July, when Russia warned it would considerany civilian vessel leaving Ukraine’s ports as military targets. Ukrainian officials believe their missiles can protect a corridor within 100 nautical miles of its coast.

But given the military risks, affordable insurance would be essential to reviving commercial shipping activity at any significant scale. Kyiv is being advised by professional services group Marsh McLennan, which includes consultancy Oliver Wyman and the world’s biggest insurance broker Marsh, on a pro bono basis.





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