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Marsh McLennan reaches deal with Ukraine government, Lloyds, to insure grain shipments amid war

Photo by Timelab / Unsplash

Insurer Marsh McLennan has reached an agreement with the Ukrainian government and other partners to offer insurance for the export of grain and other supplies from Ukraine despite the risks posed by its ongoing war with Russia.

Under the agreement, a public-private partnership will provide up to $50 million in hull and separate protection & indemnity (P&I) war risk insurance for critical exports, underwritten by insurers based at Lloyd’s of London. The partnership also includes the Export Credit Agency of Ukraine, Ukreximbank, Ukrgasbank and DZ Bank.

The deal is meant to ease constraints to the export of critical goods from Ukraine suffered since Russia withdrew from a UN-brokered agreement in July that allowed safe passage for ships loaded with Ukrainian grain.

Ukrainian Economy Minister Yulia Svyrydenko said the new insurance facility, called "unity," will allow grain traders to save about $2.76 to $3.86 per tonne of cargo.

"The launch of this insurance facility will especially benefit the developing nations that buy much of Ukraine’s grain and also help Ukraine’s future recovery and reconstruction endeavors," said Marsh McLennan CEO John Doyle. "Through these efforts, we are fulfilling our purpose as a company to give our communities and clients the confidence to thrive.”

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