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Netherlands allocates 60 million euros to insure Dutch firms helping rebuild Ukraine

Photo by Robert Anasch / Unsplash

The government has earmarked an additional 102 million euros in support for Ukraine, including 60 million euros to insure Dutch companies contributing to the reconstruction of Ukraine.

The sum will cover payment risks of investments and transactions in the form of export credit insurance, the Dutch government said in an announcement on its website.

The government "encourages Dutch companies to contribute to the reconstruction of Ukraine. Dutch entrepreneurs are very interested in this and also have unique knowledge and expertise in-house," according to the statement. However, "doing business in a country at war entails major risks, which can translate into possible payment problems."

It said the "export credit insurance for Ukraine therefore provides cover for investments and transactions by Dutch companies with risks that are not covered by commercial insurers. This makes it more accessible for entrepreneurs to export to and invest in Ukraine and thus contribute to the reconstruction." 

The 102-million-euro payment also includes 30 million euros to buy gas and parts for the electricity network, plus 7 million euros for the IMF fund for technical assistance to Ukraine, and 5 million euros to support areas recently re-taken from Russian forces, the government said.

Insurance to cover risks not insured by commercial firms has gradually become more readily available to foreign firms working on the reconstruction of Ukraine, with the governments of France, Poland and other nations helping with coverage.

Also, the World Bank's Multilateral Investment Guarantee Agency (MIGA) last month issued Ukraine's first war-risk guarantees for private investors, providing $9.1 million of war insurance for the construction and operation of a warehouse and supporting infrastructure in the western city of Lviv.

The insurance covers the investment of UIPH Ukrainian Industrial Property Holding Limited of Cyprus in the form of equity and a shareholder loan in Lviv's M10 Industrial Park Project against the risk of war and civil disturbance for up to 10 years, MIGA announced

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