Adoption of Bill No. 9015: a significant step in Ukraine's economic recovery

On 22 November 2023, the Verkhovna Rada of Ukraine has approved the draft Bill No. 9015, amending the Law of Ukraine "On financial mechanisms for stimulating export activities" regarding the insurance of investments in Ukraine against war and political risks ("Draft Bill No. 9015"). 

Draft Bill No. 9015 grants the Export Credit Agency of Ukraine (ECA) the right to insure and reinsure against war and political risks the following: 

• credits of Ukrainian economic entities related to investments in the creation of facilities and infrastructure necessary for the development of processing industries and the export of goods (works, services) of Ukrainian origin; and 
• direct investments from and into Ukraine. 

At the same time, final and transitional provisions stipulate that the list of war and political risks, as well as the terms and procedures for insuring (reinsuring) such risks, will be determined by the Cabinet of Ministers of Ukraine in consultation with the National Bank of Ukraine within three months from the date of publication of the Draft Bill No. 9015. 

The Draft Bill No. 9015 also envisages changes to the list of sources of financing programs for credit support of Ukrainian exporters. It provides for a possibility of Funding not only from the state budget through authorized banks but also from other sources specified by law. Although the Draft Bill No. 9015 does not stipulate an express list of such extra sources, it is expected that international investors will be involved in providing the corresponding financing. 

Draft Bill No. 9015 is a positive signal for businesses operating in Ukraine and it will most probably facilitate the attraction of new investments into the economy amid the ongoing war. It is a necessary, but not the only, condition for launching investment insurance through the ECA. The capitalization of ECA, to which the Ukrainian government is currently actively engaging foreign partners, will also be of key importance. 

It is expected that Draft Bill No. 9015will come into effect on 1 January 2024, except for final and transitional provisions, which will come into effect the day after the publication of the law. As of the date of this announcement, the Draft Bill No. 9015has been sent for the President of Ukraine's signature.